Location: Sauk 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 | $399,002 | 0.51% | F |
U.S. Census Bureau data (2024)
In ZIP code 53583, the economics of Section 8 housing are governed by the Specific Area Fair Market Rent (SAFMR) which is set at $1250 for a two-bedroom unit in fiscal year 2024. This SAFMR is specifically tailored for this ZIP code, meaning it reflects the unique rental market conditions present here.
The local market rent for a two-bedroom apartment, according to the Census ACS, is $1133. This figure represents the average rent paid by tenants without vouchers in the area. Landlords participating in the Section 8 program should note that the SAFMR sets an upper limit on the rent they can charge for a voucher-assisted unit, regardless of the local market conditions.
A Section 8 voucher pays a significant portion of the rent, but not all of it. The voucher covers the difference between 30% of the household's income and the SAFMR, up to the SAFMR amount. For example, if a tenant's household income is $20,000 per year, their monthly contribution would be approximately $500 (30% of $20,000 divided by 12 months). The voucher would then cover the remaining $750, bringing the total to $1250, which is the maximum allowable rent under the SAFMR for this ZIP code.
Utility allowances also play a role in the reimbursement calculation. These allowances vary based on the size of the unit and the region. In ZIP 53583, the utility allowance for a two-bedroom unit is included in the SAFMR calculation, ensuring that the landlord receives a consistent reimbursement amount.
To summarize, landlords in ZIP 53583 can expect to receive a reimbursement of up to $1250 per month for a two-bedroom unit when a tenant uses a Section 8 voucher. This amount includes the tenant's portion of the rent and any applicable utility allowances. Given the local market rent of $1133, landlords might find themselves receiving slightly more than the average market rent, thus creating a surplus of $117 per unit per month.
This surplus allows landlords to maintain their properties at a higher standard or to cover administrative costs associated with the Section 8 program. However, landlords must ensure that the rent charged does not exceed the SAFMR, even if the market conditions suggest otherwise.
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.