Section 8 Fair Market Rent (FMR) for ZIP 53703 - 2027

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

Investment Score for ZIP 53703

Monthly Rent (2BR)

$1,870

Median Price (2BR)

$537,030

1% Rule

0.35%

Annual Yield

4.18%

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	$1,430
1 Bedroom	$1,640
2 Bedrooms	$1,870
3 Bedrooms	$2,450
4 Bedrooms	$2,710
5 Bedrooms	$3,144
6 Bedrooms	$3,521
7 Bedrooms	$3,803
8 Bedrooms	$3,993

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
1BR	$1,640	$358,919	0.46%	F
2BR	$1,870	$537,030	0.35%	F
3BR	$2,450	$610,613	0.4%	F
4BR	$2,710	$678,625	0.4%	F
5BR	$3,144	$842,495	0.37%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

37,659

Median Household Income

$47,847

Housing Units

21,171

Renter Percentage

85.4%

Occupancy Rate

96.2%

Renter Occupied

17,398

The area covered by ZIP code 53703 in Madison, WI, is a vibrant part of the city known for its diverse population and strong rental market. This neighborhood offers a mix of residential areas, educational institutions, and local businesses, making it an attractive location for both tenants and property owners.

The Fair Market Rent (FMR) for ZIP 53703 in fiscal year 2024 is set at $1,650, providing a benchmark for rental prices in the area.
The Zillow Observed Rent Index (ZORI) for the same region indicates that the market rent currently stands at $1,712, slightly above the FMR and reflecting competitive demand.
The median home value in ZIP 53703 is $432,740, which can influence the rental market dynamics as homeownership remains relatively accessible.
Renters make up a significant portion of the housing market, with a renter share of 85.4%, suggesting a robust tenant pool.
The median income in the area is $47,847, indicating a moderate economic base that supports the rental market but also points to affordability concerns for some potential tenants.

Investors looking to enter the ZIP 53703 market should note the slight premium of market rents over the FMR, alongside the high renter share, which signals strong demand. The median home value suggests a balanced real estate market where both rentals and home purchases are viable options. However, the median income level highlights the need for pricing strategies that cater to a range of economic backgrounds. Overall, the ZIP code presents a favorable environment for rental investments, particularly in units priced close to or below the ZORI, with careful consideration given to tenant income levels.

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.