Location: Madison, WI | Metro: Madison, WI HUD Metro FMR Area
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 | $1,150 |
| 1 Bedroom | $1,340 |
| 2 Bedrooms | $1,530 |
| 3 Bedrooms | $2,020 |
| 4 Bedrooms | $2,260 |
| 5 Bedrooms | $2,622 |
| 6 Bedrooms | $2,937 |
| 7 Bedrooms | $3,172 |
| 8 Bedrooms | $3,331 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,020 | $418,252 | 0.48% | F |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in ZIP 53529 through the Section 8 program are significant and should be carefully considered. Tenant turnover poses a notable risk due to the disparity between the Fair Market Rent (FMR) and the market rent. The FMR for ZIP 53529 in FY 2024 is set at $1250, which does not reflect the actual market conditions, leading to possible dissatisfaction among tenants and higher turnover rates.
Vacancy exposure is another concern. With a typical home value of $507,613 and a median income of $107,560, the financial burden on renters can be considerable. This imbalance may result in longer days on market (DOM), increasing the likelihood of extended vacancy periods and reducing potential rental income.
Deferred maintenance is also a critical issue. Given the high home values and relatively lower median incomes, landlords must be prepared for tenants who might not prioritize home upkeep. This scenario could lead to increased maintenance costs and the need for regular repairs, which are often covered at reduced rates under Section 8.
However, these risks are tempered by the high concentration of renters in ZIP 53529, with 25.5% of the population renting their homes. High renter density typically translates into a robust demand for housing vouchers, making it easier to find qualified tenants willing to use Section 8 vouchers. This demand can stabilize occupancy rates and provide a steady stream of income.
In conclusion, the overall risk for a first-time Section 8 landlord in ZIP 53529 is moderate.
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.