Location: Jefferson County, WI | Metro: Jefferson County, WI
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 | $920 |
| 1 Bedroom | $1,050 |
| 2 Bedrooms | $1,320 |
| 3 Bedrooms | $1,790 |
| 4 Bedrooms | $1,800 |
| 5 Bedrooms | $2,088 |
| 6 Bedrooms | $2,339 |
| 7 Bedrooms | $2,526 |
| 8 Bedrooms | $2,652 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,320 | $306,726 | 0.43% | F |
| 3BR | $1,790 | $415,814 | 0.43% | F |
| 4BR | $1,800 | $477,138 | 0.38% | F |
U.S. Census Bureau data (2024)
In ZIP code 53551, which encompasses Lake Mills, WI, in Jefferson County, the Section 8 housing program operates under specific economic guidelines. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2026 is set at $1,220. This figure represents the maximum amount that the Housing Choice Voucher program will pay towards rent for a unit of this size in this area.
The local market rent, as reported by the Census ACS (American Community Survey), is slightly lower at $1,201. This indicates that the SAFMR is designed to be competitive with the local rental market, ensuring that tenants can find suitable housing without landlords being significantly disadvantaged.
A landlord participating in the Section 8 program should understand that the total reimbursement for a two-bedroom apartment includes both the tenant's contribution and the utility allowance. The tenant is required to pay 30% of their adjusted income towards rent. If we assume an average adjusted income for a tenant in this area, the tenant's portion would typically be around $360 to $390, depending on the individual's income level. This amount is then added to the SAFMR to determine the total reimbursement.
Utility allowances vary but generally cover the cost of electricity, gas, water, and sewer. For a two-bedroom apartment in ZIP 53551, the utility allowance might be around $200 per month, though this can fluctuate based on actual usage and local rates. Therefore, the total reimbursement a landlord can expect is the sum of the SAFMR and the tenant's portion plus utilities.
To illustrate, if a tenant's portion is $375 and the utility allowance is $200, the landlord would receive a total of $1,795 per month for a two-bedroom apartment. However, the actual rent charged to the tenant remains capped at $1,201, based on the local market rate, unless the landlord agrees to a higher rate.
Given these numbers, there is a slight surplus for landlords participating in the Section 8 program in ZIP 53551. The reimbursement exceeds the local market rent by approximately $9 to $19 per month, depending on the exact figures used for the tenant's portion and utility allowance. This surplus provides a buffer against potential fluctuations in utility costs and ensures that landlords are adequately compensated for renting to Section 8 participants.
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.