Section 8 Fair Market Rent (FMR) for ZIP 53531 - 2027

Location: Madison, WI | Metro: Madison, WI HUD Metro FMR Area

Investment Score for ZIP 53531

N/A

Monthly Rent (2BR)

$1,530

Median Price (2BR)

$N/A

1% Rule

Annual Yield

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	$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

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
3BR	$2,020	$430,894	0.47%	F
4BR	$2,260	$500,964	0.45%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

4,430

Median Household Income

$105,000

Housing Units

1,644

Renter Percentage

16.4%

Occupancy Rate

98.2%

Renter Occupied

264

ZIP code 53531, located in Wisconsin, is a residential area characterized by a mix of single-family homes and rental properties. The local economy is stable, with a median income that reflects a comfortable standard of living for residents. This analysis provides insights into the housing market dynamics, focusing on key metrics relevant to landlords and small-portfolio investors.

The Fair Market Rent (FMR) for ZIP 53531 for fiscal year 2024 is set at $1,250, indicating the maximum amount a low-income family should pay for housing to be considered affordable.
The market rent, as reported by the Census American Community Survey, stands at $1,221, closely aligning with the FMR but providing a more granular view of what tenants are willing to pay.
The median home value in the area is $428,834, suggesting that homeownership is relatively expensive compared to the national average, yet still within reach for many local residents.
Renters make up 16.4% of the housing market in ZIP 53531, a figure that points to a smaller but significant portion of the population relying on rental housing.
The Days on Market (DOM) for rental listings is not applicable (N/A), which could mean that rentals are typically listed and filled quickly, or there is insufficient data to provide an accurate DOM figure.
The median household income in the area is $105,000, reflecting a robust economic base that supports both homeownership and rental markets.

Investors looking to enter the ZIP 53531 market should note the alignment between the Fair Market Rent and the actual market rent, indicating a balanced pricing environment. The median home value suggests that the area is desirable, which can translate into higher rental demand and stability. With a significant but not overwhelming renter share, the competition for rental properties might be moderate, allowing for reasonable vacancy rates and rental income. The lack of DOM data implies either a fast-moving rental market or limited available data, which could be advantageous for quick property turnover. Given the strong median income, tenants are likely to have the financial capacity to meet rental obligations, making ZIP 53531 a viable investment opportunity for those interested in the rental sector.

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.