Location: Madison, 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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,530 | $234,231 | 0.65% | D |
| 3BR | $2,020 | $395,840 | 0.51% | F |
| 4BR | $2,260 | $517,579 | 0.44% | F |
U.S. Census Bureau data (2024)
ZIP code 53713 is situated in a diverse area of Madison, WI, characterized by a significant rental market presence. With a total population of 24,351, this neighborhood stands out due to its high percentage of renters at 67.5%. This statistic highlights a strong demand for rental properties, making it an attractive investment opportunity for both landlords and small-portfolio investors.
The median household income in ZIP 53713 is $58,017, which places it below the national average but still within a range that supports a stable tenant base. The median home value is notably higher at $353,219, indicating that while homeownership is present, the majority of residents are renting. This dynamic suggests a mix of students, young professionals, and families who prefer or require rental housing over homeownership.
Moving into the economic analysis of rents, the Fair Market Rent (FMR) for ZIP 53713 in fiscal year 2024 is set at $1,250. In contrast, the market rent, as measured by Zillow's ZORI index, stands at $1,457. This gap between FMR and market rent indicates a potential opportunity for landlords to participate in the Section 8 program while still achieving reasonable profitability. However, it also suggests that there might be a challenge in finding properties that meet the quality standards required for the voucher program at the lower FMR rates.
Given these factors, ZIP 53713 would suit a hands-on value-add buyer more than a hands-off voucher operator. The need to maintain properties to meet Section 8 standards alongside the potential to charge slightly above FMR rates points towards an investment strategy that requires active management and possibly some renovation work. For those willing to invest time and capital into improving their properties, this ZIP code offers a promising avenue for steady returns, driven by a robust rental market and a community that values its housing options.
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.