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 |
|---|---|---|---|---|
| 2BR | $1,530 | $351,918 | 0.43% | F |
| 3BR | $2,020 | $444,725 | 0.45% | F |
| 4BR | $2,260 | $530,777 | 0.43% | F |
U.S. Census Bureau data (2024)
In Blue Mounds, Wisconsin (ZIP 53572), the real estate market signals a stable environment for pricing power over the next 12-24 months. The median home value stands at $478,903, reflecting a solid foundation for property values. Notably, only 0.2% of listings have seen reductions, indicating that sellers maintain strong negotiating leverage. This low rate of price adjustments suggests that demand remains robust relative to supply, preserving the potential for maintaining or slightly increasing prices.
The median days on market (DOM) being listed as N/A points towards a market where homes sell quickly, often before reaching a typical DOM metric. Rapid sales typically correlate with a seller's market, further reinforcing the notion that pricing power leans toward landlords and homeowners.
On the rental side, the Fair Market Rent (FMR) for ZIP 53572 in fiscal year 2024 is set at $1,290. However, the current market rent is estimated at $1,240 according to the Census ACS. This slight gap between FMR and actual market rent suggests an upward trend in rental rates, aligning with the overall stability and slight increase in home values. Landlords can expect to see modest growth in rental income as the market adjusts to meet the FMR levels.
For long-hold investors, the setup implies a realistic appreciation thesis. The consistent home values and rapid sales indicate a steady market, likely to appreciate gradually rather than experience dramatic spikes or declines. The rental market dynamics support this view, as the convergence of market rents towards FMR levels will contribute to the overall economic health of the area. Investors should focus on maintaining quality properties to ensure they capture the full benefit of this gradual appreciation.
In summary, the current metrics of median home value, minimal price reductions, and rapid sales suggest a market with strong pricing power. Rental dynamics point towards a modest increase in rental rates, supporting the broader thesis of gradual property value appreciation. Landlords and small-portfolio investors in Blue Mounds, WI, should be prepared to capitalize on these trends through strategic pricing and property management practices.
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.