Location: Jefferson County, 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 | $910 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,510 |
| 4 Bedrooms | $1,560 |
| 5 Bedrooms | $1,810 |
| 6 Bedrooms | $2,027 |
| 7 Bedrooms | $2,189 |
| 8 Bedrooms | $2,298 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,190 | $277,069 | 0.43% | F |
| 3BR | $1,510 | $356,629 | 0.42% | F |
| 4BR | $1,560 | $422,132 | 0.37% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP code 53563, located in Milton, WI, within the Jefferson County, WI metro area, does not align favorably for landlords. The Fair Market Rent (FMR) set at $1140 for the fiscal year 2024 is significantly higher than the current market rent of $948 as reported by the Census ACS. This discrepancy suggests that landlords may struggle to justify higher rents based on current market conditions.
Regarding acquisition affordability, the median home value stands at $375,158. However, the lack of available days on the market (DOM) data and the low 0.2% price-cut share indicate that homes in this area do not typically sit on the market long, nor are they often discounted. This could imply that while the median home value is high, the market remains competitive, potentially making it challenging to acquire properties at affordable rates.
Tenant demand is relatively low in ZIP 53563. With a total population of 11,280, only 15.4% of residents are renters. This limited rental market suggests that finding tenants willing to pay the FMR might be difficult given the lower market rent and the overall low percentage of renters in the area.
In summary, ZIP 53563 presents several challenges for landlords and small-portfolio investors. The mismatch between the FMR and market rent indicates potential difficulties in setting profitable rental prices. High median home values coupled with competitive market conditions suggest that acquiring properties will not be easy or inexpensive. Lastly, the low tenant demand makes it even more challenging to find suitable occupants. Given these factors, the area is not recommended for investment unless you can secure below-market property acquisitions or have a unique value proposition that justifies higher rents.
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.