Section 8 Fair Market Rent (FMR) for ZIP 53594 - 2027

Location: Jefferson County, WI | Metro: Madison, WI HUD Metro FMR Area

Investment Score for ZIP 53594

N/A

Monthly Rent (2BR)

$1,530

Median Price (2BR)

$N/A

1% Rule

Annual Yield

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

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

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
3BR	$2,020	$367,715	0.55%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

5,199

Median Household Income

$88,390

Housing Units

2,308

Renter Percentage

26.2%

Occupancy Rate

95.8%

Renter Occupied

579

ZIP code 53594, located in Wisconsin, offers a stable environment for real estate investment, particularly for those interested in Section 8 housing and rental markets. The area is characterized by a mix of residential neighborhoods and access to local amenities, making it attractive to both tenants and homeowners.

The Fair Market Rent (FMR) for ZIP 53594 in fiscal year 2024 is set at $1,250. This figure represents the maximum amount that a Section 8 voucher holder can pay for a two-bedroom apartment, providing a benchmark for rental pricing.
According to the Census Bureau's American Community Survey, the average market rent for ZIP 53594 stands at $1,124. This indicates that rental prices are slightly below the FMR, offering potential for landlords to increase rents while remaining competitive.
The median home value in the area is $353,474, suggesting a moderate level of property appreciation and a reasonable entry point for investors looking to purchase properties.
Renters make up 26.2% of the population in ZIP 53594, indicating a substantial demand for rental properties and a viable market for Section 8 housing.
The median income in the area is $88,390, which is above the national average and suggests that residents have the financial stability to support higher rental costs or property values.
The Days on Market (DOM) data is currently unavailable, but this metric would typically indicate how quickly properties sell, giving insight into the local real estate market's liquidity and demand.

Synthesizing these points, investors in ZIP 53594 can expect a moderately priced market with a strong rental component. The FMR being slightly higher than the market rent presents an opportunity to adjust prices upwards while still attracting voucher holders. With a median home value that reflects reasonable property appreciation and a median income that supports financial stability, the area offers a balanced risk-reward scenario for those looking to invest in either rental properties or single-family homes. The significant renter share further solidifies the appeal of the rental market, especially for Section 8 properties.

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.