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 | $1,280 |
| 1 Bedroom | $1,470 |
| 2 Bedrooms | $1,670 |
| 3 Bedrooms | $2,180 |
| 4 Bedrooms | $2,420 |
| 5 Bedrooms | $2,807 |
| 6 Bedrooms | $3,144 |
| 7 Bedrooms | $3,396 |
| 8 Bedrooms | $3,566 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,670 | $324,852 | 0.51% | F |
| 3BR | $2,180 | $515,501 | 0.42% | F |
| 4BR | $2,420 | $688,711 | 0.35% | F |
| 5BR | $2,807 | $904,474 | 0.31% | F |
U.S. Census Bureau data (2024)
The dynamics of the ZIP code 53717 in Madison, WI, reveal a market in motion, characterized by specific rental and housing metrics that indicate underlying pressures and trends. The Fair Market Rent (FMR) for the area stands at $1440 for fiscal year 2024, while the Zillow Observed Rent Index (ZORI) shows a slightly higher market rent of $1,823. This discrepancy suggests that the market rent exceeds the government-set FMR, indicating a robust rental sector.
A key indicator of market health is the price-cut share, which in ZIP 53717 is an exceptionally low 0.1%. This figure implies that few landlords are forced to reduce their asking prices to attract tenants, suggesting strong demand relative to supply. The lack of available data on days on market (DOM) could indicate that homes are selling quickly, further supporting the notion of a tight market where demand is high.
The median home value in the area is $510,947, a significant figure that underscores the economic vitality and desirability of the neighborhood. With a renter share of 46.7%, it's evident that nearly half of the residents prefer renting over owning, which can be attributed to various factors including affordability and lifestyle choices. This high renter share points to long-term housing pressure, as a substantial portion of the population will continue to rely on rental properties, ensuring sustained demand for rental units.
In summary, ZIP 53717 presents a market where demand appears to outpace supply, evidenced by the low price-cut share and the potential for quick sales. The high median home value and significant renter share highlight the ongoing pressure on housing, making it a promising area for landlords and small-portfolio investors looking to capitalize on strong rental dynamics.
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.