Section 8 Fair Market Rent (FMR) for ZIP 53537 - 2027

Location: Janesville-Beloit, WI | Metro: Janesville-Beloit, WI MSA

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$810
1 Bedroom	$860
2 Bedrooms	$1,130
3 Bedrooms	$1,440
4 Bedrooms	$1,490
5 Bedrooms	$1,728
6 Bedrooms	$1,935
7 Bedrooms	$2,090
8 Bedrooms	$2,195

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

752

Median Household Income

$59,821

Housing Units

400

Renter Percentage

22.9%

Occupancy Rate

88.3%

Renter Occupied

The classification of ZIP code 53537 hinges on a detailed analysis of its financial metrics, specifically focusing on rental yield and market stability.

Rental Yield: The Fair Market Rent (FMR) for ZIP 53537 in fiscal year 2024 is set at $1,060, which is notably higher than the market rent of $757. This indicates a potential for above-average rental income if properties can be rented at the FMR rate. However, the median home value stands at $243,013, suggesting that while rental yields might be attractive, they must be considered relative to the investment size.

Market Stability: With 22.9% of residents being renters, the demand for rental housing is moderate but not overwhelming. The lack of data on days on market (DOM) makes it difficult to assess how quickly units might turn over, which is crucial for gauging stability. Income levels in the area average $59,821, indicating a middle-class population that could support consistent rental payments.

Based on these figures, ZIP 53537 leans towards a steady-cashflow zone. The disparity between the FMR and market rent suggests some room for negotiation, but also implies a need to balance rent increases with affordability to maintain occupancy rates. Given the moderate percentage of renters and average income levels, the area shows signs of stability rather than volatility.

To further substantiate this classification, consider the following points:

The FMR exceeds the market rent by $303, providing an opportunity for landlords to potentially increase their income by aligning rents with the FMR.
The median home value is substantial, which means investments are significant, and therefore, the market is less likely to be prone to rapid fluctuations seen in high-yield/low-stability areas.
Average income levels suggest a stable tenant base capable of making regular rental payments.

In conclusion, ZIP 53537 offers a moderate rental yield with indicators pointing towards a stable cash flow environment, making it suitable for landlords seeking consistent returns without the risk associated with highly volatile markets.

Data Sources: FMR data from HUD (2027). 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.