Location: Janesville-Beloit, 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 | $990 |
| 1 Bedroom | $1,010 |
| 2 Bedrooms | $1,300 |
| 3 Bedrooms | $1,650 |
| 4 Bedrooms | $1,710 |
| 5 Bedrooms | $1,984 |
| 6 Bedrooms | $2,222 |
| 7 Bedrooms | $2,400 |
| 8 Bedrooms | $2,520 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,300 | $245,319 | 0.53% | F |
| 3BR | $1,650 | $319,874 | 0.52% | F |
| 4BR | $1,710 | $382,241 | 0.45% | F |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 53546, located in La Prairie, WI, within the Janesville-Beloit, WI MSA metro area, reveals a rental market where landlords can expect marginal cash flow when relying solely on the Federal Housing Administration's Fair Market Rent (FMR) of $1,140. The Zillow Observed Rental Index (ZORI) for the area stands at $1,449, indicating that market rents significantly exceed the FMR.
Voucher tenants will cover only about 78.5% of the average market rent based on the HUD FMR. This suggests that landlords will need to either accept a slight loss or seek higher-paying tenants for non-premium units to maintain positive cash flow. Premium units, however, could still offer decent returns if priced closer to the FMR or slightly above it, given the higher demand for quality housing.
The median home value in the area is $316,274, which provides a basis for calculating the rent-to-price ratio. Using the ZORI figure, the rent-to-price ratio is approximately 0.46%, indicating a relatively low cost of renting compared to buying. This ratio supports the idea that owning a rental property in this area could be more financially advantageous than purchasing a home outright, especially for investors seeking steady income.
The dynamics between renting and buying are further highlighted by the lack of available day median Days on Market (DOM) and the negligible 0.1% price-cut share. These figures suggest a stable market with little fluctuation in pricing, which benefits long-term investors looking for consistent returns.
In summary, the strongest angle for Section 8 investors in ZIP 53546 is cash flow, particularly with the potential to improve margins by focusing on premium units that can command higher rents without exceeding the tenant's ability to pay. This approach leverages the existing gap between HUD FMR and market rents to maximize profitability.
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.