Location: Iowa 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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,020 | $439,482 | 0.46% | F |
U.S. Census Bureau data (2024)
In ZIP code 53560, the economics of Section 8 housing can be quite favorable for landlords, but it's important to understand the specifics. The SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment in this ZIP is set at $1250 per month for FY 2024. This figure is higher than the local market rent, which stands at $1,028 according to the Census ACS.
A Section 8 voucher does not cover the entire rent amount. The tenant is responsible for paying a portion of the rent, typically around 30% of their income. For simplicity, let's assume the tenant pays $300 towards the rent. In addition to the base rent, there are utility allowances that can vary based on the location and type of utilities used. In ZIP 53560, the utility allowance is approximately $250 per month.
The total reimbursement to the landlord would be the lesser of the SAFMR or the actual market rent plus the utility allowance. In this case, since the SAFMR ($1250) exceeds the market rent ($1028), the landlord will receive the market rent plus the utility allowance. Thus, the landlord would be reimbursed $1278 per month for a two-bedroom unit: the full market rent of $1028 plus the utility allowance of $250.
This means that for a two-bedroom apartment in ZIP 53560, the landlord would have a $250 surplus per month over the local market rent. This surplus can help offset the costs associated with participating in the Section 8 program, such as administrative burdens and the potential for slower rent payments due to the processing time required by the housing authority.
To summarize, landlords in ZIP 53560 can expect to receive the full market rent of $1028 for a two-bedroom apartment, plus an additional $250 for utilities, making the total reimbursement $1278. This results in a monthly surplus of $250 compared to the local market rent. However, it's crucial to remember that these economics are specific to this ZIP code, as the SAFMR is set for this specific area.
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.