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 | $1,270 |
| 1 Bedroom | $1,480 |
| 2 Bedrooms | $1,700 |
| 3 Bedrooms | $2,240 |
| 4 Bedrooms | $2,510 |
| 5 Bedrooms | $2,912 |
| 6 Bedrooms | $3,261 |
| 7 Bedrooms | $3,522 |
| 8 Bedrooms | $3,698 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,700 | $464,218 | 0.37% | F |
| 3BR | $2,240 | $743,953 | 0.3% | F |
| 4BR | $2,510 | $944,575 | 0.27% | F |
| 5BR | $2,912 | $1,040,779 | 0.28% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP code 53726, located within the Madison, WI HUD Metro FMR area, does not align favorably for landlords. The Fair Market Rent (FMR) set at $1560 for fiscal year 2024 is higher than the actual market rent reported by the Census ACS, which stands at $1,364. This discrepancy means that landlords might struggle to charge the FMR without facing significant vacancy rates.
Acquisition of properties in this area is challenging due to the high median home value of $798,452. Given the lack of data on days on market (DOM) and the percentage of homes needing price cuts, it's difficult to assess the liquidity and competitiveness of the market. However, the high median home value suggests that the cost of entry into the rental market is steep, making it less attractive for small-portfolio investors looking for affordable acquisitions.
Tenant demand in ZIP 53726 is strong, with a population of 5,043 and a renter share of 67.5%. This indicates that there are more than enough potential tenants to fill rental units. However, the demand alone does not guarantee profitability if the rents charged are below the FMR and the costs of acquisition are prohibitively high.
In conclusion, while there is a robust tenant demand in ZIP 53726, the mismatch between the FMR and the actual market rent, coupled with the high median home value, makes this area less favorable for landlords and small-portfolio investors seeking to maximize their returns. The financial viability of rental properties here hinges on the ability to attract tenants willing to pay closer to the FMR, which remains uncertain given the current market conditions.
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.