Section 8 Fair Market Rent (FMR) for ZIP 53404 - 2027

Location: Racine-Mount Pleasant, WI | Metro: Racine-Mount Pleasant, WI MSA

Investment Score for ZIP 53404

Monthly Rent (2BR)

$1,190

Median Price (2BR)

$177,089

1% Rule

0.67%

Annual Yield

8.06%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$860
1 Bedroom	$960
2 Bedrooms	$1,190
3 Bedrooms	$1,520
4 Bedrooms	$1,840
5 Bedrooms	$2,134
6 Bedrooms	$2,390
7 Bedrooms	$2,581
8 Bedrooms	$2,710

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,190	$177,089	0.67%	D
3BR	$1,520	$231,033	0.66%	D
4BR	$1,840	$199,501	0.92%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

13,703

Median Household Income

$50,428

Housing Units

5,452

Renter Percentage

50.3%

Occupancy Rate

91.5%

Renter Occupied

2,510

Racine, WI, represented by ZIP code 53404, is a vibrant community that offers both rental and ownership opportunities. The area is known for its mix of residential neighborhoods and proximity to urban amenities, making it attractive to various demographics.

The Fair Market Rent (FMR) for ZIP 53404 in fiscal year 2024 is set at $1020, providing a benchmark for rental pricing.
The actual market rent, as indicated by Zillow's ZORI index, stands at $1,183, reflecting the true rental demand in the area.
The median home value in Racine, WI, is $190,314, indicating a moderate cost of living and investment potential.
Renters make up a significant portion of the housing market, with a 50.3% share of residents preferring to lease their homes.
The median income for residents in ZIP 53404 is $50,428, which suggests a stable economic base supporting rental and homeownership.

The combination of a slightly higher market rent compared to the FMR, a substantial renter population, and moderate home values indicates that Racine, WI, offers a balanced investment opportunity. Landlords can expect reasonable returns on rental properties, while small-portfolio investors should consider both rental and purchase options given the local economic conditions.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).

About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.