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 | $1,410 |
| 1 Bedroom | $1,630 |
| 2 Bedrooms | $1,850 |
| 3 Bedrooms | $2,420 |
| 4 Bedrooms | $2,680 |
| 5 Bedrooms | $3,109 |
| 6 Bedrooms | $3,482 |
| 7 Bedrooms | $3,761 |
| 8 Bedrooms | $3,949 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,630 | $215,581 | 0.76% | D |
| 2BR | $1,850 | $291,242 | 0.64% | D |
| 3BR | $2,420 | $440,036 | 0.55% | F |
| 4BR | $2,680 | $519,230 | 0.52% | F |
U.S. Census Bureau data (2024)
The ZIP code 53718 in Madison, WI, stands out within Dane County due to its unique demographic and economic characteristics. With a total population of 18,989 residents, it has a significant rental market, where 44.8% of the residents are renters. The median income for the area is $102,843, which is notably higher than the national average, indicating a relatively affluent community. However, the median home value at $430,720 suggests that homeownership is still a substantial financial commitment.
For landlords and small-portfolio investors, the key metric to consider is the Federal Market Rent (FMR) versus the market rent. In ZIP 53718, the FMR for fiscal year 2024 is set at $1,610, whereas the market rent, measured by ZORI, is $1,682. This indicates that the market rent slightly exceeds the FMR, meaning landlords participating in the Section 8 program might see a minor gap between the voucher payment and the actual market rate. This gap could be managed through careful tenant selection and property management practices to ensure profitability.
The data signature for ZIP 53718 reads as stable. The high median income and significant rental market suggest a steady demand for rental properties. Additionally, the slight disparity between the FMR and market rent can be navigated without major risks. Landlords should continue to monitor local economic indicators and housing trends to make informed decisions about their investments.
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.