Location: Iowa County, WI | Metro: Iowa County, 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 | $860 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,510 |
| 4 Bedrooms | $1,890 |
| 5 Bedrooms | $2,192 |
| 6 Bedrooms | $2,455 |
| 7 Bedrooms | $2,651 |
| 8 Bedrooms | $2,784 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,130 | $224,171 | 0.5% | F |
| 3BR | $1,510 | $319,087 | 0.47% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering real estate investments in ZIP 53533 (Dodgeville, WI) might raise several objections. Here we address three key concerns using available data.
Will Fair Market Rent (FMR) $1020 cover the mortgage on a $330,691 home? To determine if the FMR of $1020 can cover the mortgage on a home priced at $330,691, it's necessary to calculate the monthly mortgage payment. According to recent mortgage interest rates, a 30-year fixed rate for a good credit score borrower ($500,000 loan amount) is approximately 3.5%. However, the exact rate for a smaller loan amount in Dodgeville is not provided in the search results. Assuming a similar rate, the monthly mortgage payment for a $330,691 home could be around $1,400 to $1,500. Thus, the FMR of $1020 alone would not cover the mortgage. An additional source of income or lower mortgage rates could help bridge this gap.
Is there enough renter demand at 32.1%? The estimated median household income in ZIP 53533 for 2023 is $81,595. This suggests that while the rental demand at 32.1% might not be as high as in urban centers, it is still significant given the relatively stable economy of the area. Dodgeville is a small town with a steady population, and the rental market seems to cater to various demographics, including families and individuals. The presence of events such as the Wisconsin Grilled Cheese Championship indicates some level of community activity that could support rental demand. However, the data does not provide a detailed breakdown of the rental market size or tenant profiles, which would be useful for a more precise analysis.
Will vouchers keep pace with $984 market rents? The Dodgeville Housing Authority manages the Housing Choice Voucher Program (Section 8). While the specific voucher amounts for ZIP 53533 are not detailed in the data, the national trend suggests that vouchers aim to cover a substantial portion of market rents. In Dodgeville, the median household income is lower than the national average, indicating that the local voucher program might be more generous relative to market rents. However, the exact figure for voucher coverage is not provided, so it's uncertain if they will fully match the $984 market rent. Investors should consult the local housing authority for more detailed information on voucher usage trends and amounts.
The data highlights that while there are challenges in covering mortgages solely with FMR and questions about the adequacy of vouchers, the rental market in Dodgeville has a solid foundation. Additional research into local economic trends and specific mortgage rates would provide further clarity on these points.
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.