Location: Madison, WI | Metro: Madison, WI HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,200 |
| 1 Bedroom | $1,380 |
| 2 Bedrooms | $1,570 |
| 3 Bedrooms | $2,050 |
| 4 Bedrooms | $2,270 |
| 5 Bedrooms | $2,633 |
| 6 Bedrooms | $2,949 |
| 7 Bedrooms | $3,185 |
| 8 Bedrooms | $3,344 |
The HUD Fair Market Rent (FMR) for ZIP code 53701 in Madison, Wisconsin, for fiscal year 2024 is set at $1370 for a standard unit. This figure serves as a benchmark for Section 8 investors operating in the area. However, the comparison to the market rent is currently unavailable, which makes it challenging to determine the exact cash flow potential of voucher tenants at this FMR rate. Generally, in areas where market rents exceed the HUD FMR, voucher tenants can only cash flow in premium units or units that have been renovated to meet higher standards.
To derive the rent-to-price ratio, we would typically use the median home value in the area. Unfortunately, the median home value for ZIP 53701 is also not available at this time. The lack of this data means that we cannot provide a precise rent-to-price ratio, which is crucial for understanding the comparative advantage of renting versus buying in the market.
The days on market (DOM) and the percentage of homes that require a price cut are metrics that can indicate the health and dynamics of the local real estate market. These figures help investors gauge how quickly they can expect to sell properties and the likelihood of needing to adjust their asking prices. For ZIP 53701, these metrics are also not available, but they are important considerations for understanding the broader implications of rent versus buy dynamics in the area.
In the absence of specific market rent data, the strongest angle for Section 8 investors in ZIP 53701 remains the stability provided by government-backed rental assistance programs. Voucher holders offer a reliable stream of income, backed by the federal government, which can be particularly advantageous in a market where other factors are uncertain.
Data Sources: FMR data from HUD (2027).
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.