Location: Walworth 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 | $970 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,280 |
| 3 Bedrooms | $1,620 |
| 4 Bedrooms | $1,770 |
| 5 Bedrooms | $2,053 |
| 6 Bedrooms | $2,299 |
| 7 Bedrooms | $2,483 |
| 8 Bedrooms | $2,607 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,620 | $292,605 | 0.55% | F |
U.S. Census Bureau data (2024)
The ZIP code 53525 in Walworth County, WI, is best suited as a cash-flow anchor within a Section 8 portfolio strategy. This designation is based on the significant spread between the Fair Market Rent (FMR) and the actual market rent, as well as the relatively high median home value compared to the average rental income.
The FMR for a one-bedroom unit in ZIP 53525 for fiscal year 2024 is set at $1120. However, the market rent for a similar unit is approximately $943, indicating a positive spread of $177 per month. This spread ensures that properties in this area will generate consistent and reliable cash flow for landlords and small-portfolio investors, especially when they participate in the Section 8 program.
The median home value in ZIP 53525 stands at $316,271, which is higher than the average rental income in the area. This suggests that while property values are solid, the rental market is more modest. Therefore, focusing on cash flow rather than rapid appreciation is the optimal strategy for this region.
ZIP 53525 does not present itself as an appreciation play due to the lack of significant price-cut shares or days on market (DOM) figures. Additionally, the 21.9% renter share indicates a substantial portion of the population prefers homeownership, making it less likely for rapid increases in rental demand or property values.
In conclusion, ZIP 53525 serves as a cash-flow anchor within a Section 8 portfolio strategy, providing a stable and predictable income stream with a positive spread between FMR and market rents. Landlords and small-portfolio investors should prioritize properties in this area for their ability to generate consistent cash flow, rather than expecting significant capital appreciation.
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.