Section 8 Fair Market Rent (FMR) for ZIP 53558 - 2027
Location: Madison, WI | Metro: Madison, WI HUD Metro FMR Area
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $1,320 |
| 1 Bedroom | $1,520 |
| 2 Bedrooms | $1,730 |
| 3 Bedrooms | $2,260 |
| 4 Bedrooms | $2,500 |
| 5 Bedrooms | $2,900 |
| 6 Bedrooms | $3,248 |
| 7 Bedrooms | $3,508 |
| 8 Bedrooms | $3,683 |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$107,609
Housing Authorities Serving ZIP 53558
A decision tree for whether a landlord should invest in ZIP 53558 (McFarland, WI) for Section 8 properties hinges on three key factors: Fair Market Rent (FMR), market rent comparison, and rental demand.
1) Does FMR $1470 (zip FY 2024) clear debt service on a $485,590 property?
- No: The FMR of $1470 does not sufficiently cover the debt service on a property valued at $485,590. Assuming typical financing terms, the monthly mortgage payment would likely exceed the FMR, making it unprofitable without additional subsidies or a higher tenant contribution.
2) Is market rent $1,550 (Census ACS) above, at, or below FMR?
- Above: At $1,550, the market rent exceeds the FMR of $1470. This indicates that landlords could potentially charge more than the FMR for non-Section 8 tenants, which might make the area attractive for mixed-use investment strategies.
- At: Not applicable in this case as the market rent is above the FMR.
- Below: Not applicable in this case as the market rent is above the FMR.
3) Are 23.0% renters + N/A-day days on market (DOM) enough demand?
- Yes: With 23.0% of the population renting, there is a reasonable level of demand. However, the absence of data on days on market (DOM) means we cannot fully assess how quickly properties are rented out. If you can secure a steady stream of Section 8 tenants, the demand is sufficient given the rental percentage.
- No: If the DOM is high, indicating slow rental turnover, then the answer would be no. However, since the DOM is not provided, we must assume the demand is sufficient based on the rental percentage alone.
- It Depends: The decision heavily relies on the DOM data. A low DOM suggests strong demand, while a high DOM implies weak demand. Without DOM data, it's challenging to provide a definitive answer, but the 23.0% rental rate is a positive indicator.
In summary, for ZIP 53558, the FMR does not support debt service on a $485,590 property, and the market rent is slightly above the FMR, offering potential for mixed-use investments. Rental demand appears adequate at 23.0%, though the lack of DOM data leaves some uncertainty. Landlords should consider these points before deciding to invest in Section 8 properties in this area.
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.