Location: Lafayette County, WI | Metro: Iowa County, 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 | $840 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,810 |
| 5 Bedrooms | $2,100 |
| 6 Bedrooms | $2,352 |
| 7 Bedrooms | $2,540 |
| 8 Bedrooms | $2,667 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,090 | $215,574 | 0.51% | F |
| 3BR | $1,390 | $260,638 | 0.53% | F |
| 4BR | $1,810 | $277,096 | 0.65% | D |
U.S. Census Bureau data (2024)
ZIP code 53818, located in Platteville, Wisconsin, presents an interesting balance between yield and stability for real estate investors. The Fair Market Rent (FMR) for FY 2024 is set at $1,030, which is significantly higher than the market rent of $867. This discrepancy suggests a potential opportunity for landlords to increase rental rates closer to the FMR, thereby boosting their yield.
The median home value in this area is $255,877, indicating that it is not a low-value market where quick flips might be common. Instead, the higher FMR compared to the market rent points towards a scenario where landlords can achieve decent cash flow if they manage to lease properties at or near the FMR.
On the stability front, ZIP 53818 has a relatively high percentage of renters at 48.0%, which is a positive sign for long-term investment. However, the lack of data on the number of days on market (DOM) makes it challenging to assess the speed at which properties are rented out. Additionally, the average household income of $55,567 provides some insight into the financial capacity of residents but does not offer a complete picture of economic stability.
Given these figures, ZIP 53818 leans more towards being a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The potential for higher rents based on the FMR supports a moderate yield, while the substantial portion of renters and the reasonable home values suggest a stable environment for holding properties. Landlords should aim to leverage the higher FMR to secure better rental income while considering the local economy's ability to sustain such rates.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.