Section 8 Fair Market Rent (FMR) for ZIP 53511 - 2027

Investment Score for ZIP 53511

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	$980
1 Bedroom	$1,010
2 Bedrooms	$1,290
3 Bedrooms	$1,630
4 Bedrooms	$1,700
5 Bedrooms	$1,972
6 Bedrooms	$2,209
7 Bedrooms	$2,386
8 Bedrooms	$2,505

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,290	$164,647	0.78%	D
3BR	$1,630	$229,702	0.71%	D
4BR	$1,700	$252,235	0.67%	D
5BR	$1,972	$279,782	0.7%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 53511 (Beloit, WI) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 53511 is set by HUD for 2026, with the following rates: - 0BR: $880 - 1BR: $940 - 2BR: $1220 - 3BR: $1560 - 4BR: $1620 These FMRs represent the maximum rent that a Section 8 voucher holder can pay for housing. However, the actual rents in the market need to be considered to understand how these vouchers work in practice. The Zillow median price for a 2BR unit is $155,380, which is significantly higher than the FMR. The price-to-FMR ratio for a 2BR unit is 10.6x, indicating that the median home value is much higher than what the FMR suggests for rental rates. Given the high price-to-FMR ratio, it is likely that many landlords in Beloit will not accept Section 8 vouchers because they would prefer to sell their properties rather than rent them out at the FMR rate. This could limit the availability of rental units for voucher holders, making it challenging for them to find suitable housing within their budget. #### Affordability & Renter Profile ZIP code 53511 has a population of 48,701, with 34.1% of residents being renters. The occupancy rate stands at 94.4%, suggesting that the rental market is relatively tight. The median household income is $67,067, and the FMR for a 2BR unit ($1220) represents 21.8% of this income. This indicates that while the rental market is somewhat affordable relative to incomes, it still poses a significant financial burden on renters, especially those relying on Section 8 vouchers. The high occupancy rate and the substantial percentage of renters suggest that there is a strong demand for rental properties in Beloit. However, the limited supply of units that accept Section 8 vouchers means that the market is particularly challenging for low-income tenants who rely on government assistance. #### Investor Angle From an investor perspective, the key question is whether the ZIP code offers cash flow-positive opportunities at the FMR rates. Given that the Zillow median price for a 2BR unit is $155,380, and the FMR for a 2BR unit is $1220, we can estimate the potential cash flow. Assuming a typical mortgage rate of around 5%, the monthly mortgage payment for a $155,380 property would be approximately $860. Adding typical expenses such as property taxes (estimated at 1.5% of the property value), insurance, maintenance, and other costs, the total monthly expenses might be around $1,200. At the FMR rate of $1220, the cash flow would be minimal or negative, depending on the exact expenses. For example, if the total monthly expenses were $1,200, then the net cash flow would be $20 per month. If the expenses exceed $1220, the investor would incur a loss. Given the tight rental market and the high occupancy rate, there might be some opportunity to charge slightly above the FMR rate, but this would mean fewer tenants eligible for Section 8 vouchers. The investment grade in this ZIP code is moderate due to the affordability challenges and the limited number of properties that accept vouchers. #### Specific Actionable Insights 1. **Focus on Units Below FMR Rates**: Investors should consider acquiring properties where the rent is below the FMR rates. For instance, a 2BR unit renting for $1100 would provide a better cash flow margin compared to charging the full FMR rate of $1220. This would also make the property more attractive to voucher holders. 2. **Target Properties with Lower Expenses**: To achieve positive cash flow, investors should look for properties with lower operating expenses. This could include older homes that require less maintenance or properties in areas with lower tax rates. For example, a 2BR unit with a mortgage payment of $800 and total monthly expenses of $1,000 would generate a positive cash flow of $220 when rented at the FMR rate. 3. **Consider Short-Term Rentals**: Given the high price-to-FMR ratio, investors might want to explore short-term rental options through platforms like Airbnb. This could potentially generate higher revenue than long-term rentals at the FMR rate. However, this strategy would not be suitable for Section 8 voucher holders. #### Bottom Line For investors focusing specifically on Section 8 vouchers, the ZIP code 53511 presents a challenging environment. The high price-to-FMR ratio and limited supply of properties that accept vouchers suggest that the market is not highly favorable for cash flow-positive investments. Therefore, the recommendation is to **Skip** this ZIP code unless you can find properties with significantly lower expenses or are willing to operate at very thin margins. However, if you are looking for a broader investment strategy that includes non-voucher tenants, there might be opportunities to achieve positive cash flow by targeting properties with lower expenses or slightly below-market rents. In this case, a **Hold** recommendation would be more appropriate, but with caution and careful selection of properties.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.