Location: Jefferson 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 | $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 |
|---|---|---|---|---|
| 2BR | $1,530 | $261,890 | 0.58% | F |
| 3BR | $2,020 | $347,171 | 0.58% | F |
| 4BR | $2,260 | $419,173 | 0.54% | F |
U.S. Census Bureau data (2024)
ZIP code 53534 is located in the town of Edgerton, Wisconsin. This neighborhood is characterized by a moderate-sized population of 12,241 residents, where 21.9% of the inhabitants are renters. The area boasts a robust median income of $89,045, reflecting a stable economic environment. The median home value in Edgerton stands at $341,973, indicating a healthy real estate market with properties that are generally well-maintained and valued.
From an investment perspective, the Federal Market Rent (FMR) for ZIP 53534 in fiscal year 2024 is set at $1,250, which represents the maximum amount the government will pay for rental housing units under the Section 8 program. In contrast, the market rent, as measured by Zillow's Observed Rent Index (ZORI), is currently $1,165. This suggests that landlords participating in the Section 8 program can expect a slightly higher rental income compared to the general market, which could be beneficial for maintaining or upgrading property standards.
The question then becomes whether this area suits a hands-off voucher operator or requires a hands-on approach for a value-add buyer. Given the relatively high median income and stable median home values, a hands-off operator might find success by leveraging the guaranteed income from the Section 8 program. However, the opportunity for a value-add buyer is also present, particularly in enhancing the quality of rental units to command rents closer to the FMR, thereby increasing profitability while still benefiting from the stability of government-backed payments.
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.