Location: Dodge County, WI | Metro: Dodge County, WI
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 | $960 |
| 1 Bedroom | $1,070 |
| 2 Bedrooms | $1,340 |
| 3 Bedrooms | $1,780 |
| 4 Bedrooms | $1,780 |
| 5 Bedrooms | $2,065 |
| 6 Bedrooms | $2,313 |
| 7 Bedrooms | $2,498 |
| 8 Bedrooms | $2,623 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,340 | $315,529 | 0.42% | F |
| 3BR | $1,780 | $365,772 | 0.49% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,300 for ZIP 53933 in Fox Lake, WI, will sufficiently cover the mortgage on a home priced at $340,488. The median monthly mortgage payment for a $340,488 home, assuming a 20% down payment and a 30-year fixed-rate mortgage at an interest rate of 5%, would be approximately $1,500. This suggests that FMR does not fully cover the mortgage, leaving a shortfall of around $200 per month.
Another concern could be the relatively low renter demand, indicated by the 29.0% rental rate. However, this figure alone does not provide a complete picture. It's important to consider the overall occupancy rates and the trend of rental demand. For instance, the current unemployment rate in ZIP 53933 is 3.3%, which is lower than both the state and national averages. This implies a stable job market, potentially supporting higher rental demand than the raw percentage might suggest.
The final objection might be whether Housing Choice Vouchers will keep pace with market rents of $1,251. While the data does not provide a direct comparison between voucher amounts and market rents, it is worth noting that the median home value in ZIP 53933 is $182,000. This indicates a moderately priced housing market. If the trend continues, with the Zillow Home Value Index (ZHVI) showing a YoY increase of 7.45%, it's crucial to monitor how voucher programs adjust to these rising costs. Historically, voucher amounts have been adjusted annually based on local market conditions; however, this adjustment may not always align perfectly with the actual market rent.
In summary, while the FMR of $1,300 does not fully cover the mortgage on a $340,488 home, the stable job market and potential for increasing rental demand can mitigate some risks. Additionally, although there is no direct data on voucher adjustments, monitoring annual changes in voucher amounts against market rent increases is advisable to ensure long-term viability for Section 8 investors.
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.