Location: Green County, WI | Metro: Janesville-Beloit, WI MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $810 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,490 |
| 5 Bedrooms | $1,728 |
| 6 Bedrooms | $1,935 |
| 7 Bedrooms | $2,090 |
| 8 Bedrooms | $2,195 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,130 | $230,243 | 0.49% | F |
| 3BR | $1,440 | $327,303 | 0.44% | F |
| 4BR | $1,490 | $342,110 | 0.44% | F |
U.S. Census Bureau data (2024)
Skeptical investors considering the ZIP code 53520, Brodhead, WI, often raise several key concerns regarding the feasibility of investing in this area through the lens of Section 8 housing. These objections center around financial viability, renter demand, and the adequacy of voucher payments.
Objection 1: Will Fair Market Rent (FMR) of $930 for the fiscal year 2024 cover the mortgage on a $308,232 home?
The FMR of $930 does not automatically guarantee that it will cover the mortgage on a $308,232 home. The monthly mortgage payment largely depends on the interest rate and the length of the loan. For instance, a 30-year fixed-rate mortgage at an average interest rate of 5% would result in a monthly payment of approximately $1,650. This amount exceeds the FMR, indicating that relying solely on FMR might not be sufficient to cover the mortgage. However, investors can mitigate this risk by securing a lower interest rate or considering shorter-term loans.
Objection 2: Is there enough renter demand at 24.1%?
The 24.1% rental rate suggests that a quarter of the households in Brodhead are renters. While this percentage may seem low, it's important to note that the actual number of renters can still be substantial given the size of the population. Additionally, the demand for rental properties can vary based on factors such as job availability, student population, and economic conditions. Brodhead's rental market might be smaller but could still be stable or growing if local employment opportunities are robust. To accurately gauge demand, investors should consider conducting a detailed analysis of local rental trends and vacancy rates.
Objection 3: Will vouchers keep pace with $769 market rents?
The market rent of $769 is below the FMR of $930, which means that voucher holders have some flexibility in finding affordable housing. However, whether vouchers will keep pace with market rents is uncertain without specific data on the growth of voucher amounts. The Housing Choice Voucher Program aims to ensure that voucher holders can afford decent housing, but adjustments to voucher amounts are made annually based on federal guidelines and local cost of living changes. If the local cost of living increases significantly, it could outpace the annual adjustments to voucher amounts, potentially leaving landlords with a shortfall. Investors should monitor local cost of living trends and the frequency of voucher adjustments to make informed decisions.
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.