Location: Jefferson County, WI | Metro: Madison, WI HUD Metro FMR Area
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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,530 | $302,654 | 0.51% | F |
| 3BR | $2,020 | $380,877 | 0.53% | F |
| 4BR | $2,260 | $441,822 | 0.51% | F |
U.S. Census Bureau data (2024)
ZIP 53559, located in Medina, WI within the Jefferson County, WI metro area, can serve as a strong cash-flow anchor within a Section 8 portfolio strategy. This designation is based on the favorable financial metrics that support a consistent and reliable rental income stream.
The Federal Market Rent (FMR) for ZIP 53559 in fiscal year 2024 is set at $1250. In comparison, the market rent stands at $884, indicating a significant spread that benefits landlords participating in the Section 8 program. By securing tenants through Section 8, landlords can achieve rental rates that are $366 higher than the local market average, enhancing their cash flow. This positive differential ensures that properties in ZIP 53559 generate above-average rental income relative to the typical market conditions.
The median home value in ZIP 53559 is $413,643, which reflects a stable housing market. While property appreciation is not a primary focus in this area due to the lack of data suggesting high price-cut shares or short days on market (DOM), the steady home values contribute to a secure investment environment. Landlords can expect minimal fluctuations in property value, reducing risk and providing a predictable asset base.
ZIP 53559 also features a 17.4% renter share, indicating a moderate demand for rental properties. The median income of $93,571 suggests a relatively affluent community, which can be beneficial for landlords as it implies a stable tenant pool with the means to meet their rental obligations. However, given the specific metrics available, the primary role of this ZIP code within a Section 8 portfolio is as a cash-flow anchor, not primarily an appreciation play or diversifier.
In summary, ZIP 53559 excels as a cash-flow anchor within a Section 8 portfolio due to the substantial difference between the FMR and market rent, ensuring higher-than-average rental income. The stable median home value further solidifies this role, making it an ideal choice for landlords and small-portfolio investors seeking consistent financial returns.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.