What’s the average rent in Racine, WI?

Each year, the U.S. Department of Housing and Urban Development (HUD) estimates something called Fair Market Rent (FMR) for every region in the country, including Racine. These numbers represent the estimated cost of rent plus basic utilities (like water, heat, and gas) for standard-quality rental housing.

Fair Market Rent is not the maximum or average price exactly. It’s meant to reflect the 40th percentile of rents in the area, meaning 40% of units in Racine should rent at or below this amount.

Unit Style	FY 2025 FMR
Efficiency	$788
One Bedroom	$901
Two Bedroom	$1,149
Three Bedroom	$1,490
Four Bedroom	$1,814

if you're looking for a 1-bedroom in Racine, HUD estimates you’ll need around $901 per month to cover both rent and utilities.

Racine Rent Trends – What’s Changing?

Like much of Southeast Wisconsin, rents in Racine have steadily increased every year since 2021, with the biggest jumps happening between 2022 and 2025.

Efficiency units rose from $598 in 2021 to $788 in 2025 — a 32% increase.
One-bedrooms went up nearly 31%, now averaging $901/month.
Two-bedroom rents increased by about 27%, reaching $1,149 in 2025.
Three- and four-bedroom units saw the largest dollar increases, now costing $1490 and $1814 per month, respectively—up more than $300–$500 since 2021.

Racine remains one of the more budget-friendly rental markets in Southeast Wisconsin, offering opportunities for renters seeking space, stability, and savings. Here’s a five year picture of how fair market rents have evolved in Racine:

How Much Do You Need To Earn To Afford Rent in Racine?

The 30% rule is a common guideline used by housing experts, landlords, and public housing programs. It suggests that you should spend no more than 30% of your gross monthly income (your income before taxes) on rent.

Going over that limit can make it harder to cover other essentials like food, transportation, healthcare, or savings. While it’s not a strict rule, many landlords use it when reviewing rental applications—and some housing assistance programs use it as a requirement for eligibility.

So what does that mean in practical terms?

If you're looking for a one-bedroom apartment in Racine, which averages around $900 per month, you’d need to earn at least $3,000 per month—or about $36,000 per year—to stay within the 30% affordability range.

For a two-bedroom unit, now renting for roughly $1,150, a renter would need to earn closer to $46,000 annually to afford it comfortably.

Larger units, like three- or four-bedrooms, require higher income levels—typically $60,000 to $75,000 per year, depending on utilities and family size.

These are just benchmarks. If you’re spending more than 30% of your income on rent, you’re considered “rent burdened,” but many renters in Racine still find ways to make it work by budgeting carefully or seeking out shared housing or income-restricted units.

Affordable Housing and Rent Support in Racine

Affordable housing generally refers to rental units priced so that tenants spend no more than 30% of their gross income on housing costs (including utilities). These units may be available through: 

Income-restricted properties (which limit eligibility based on your income)
Government-supported programs like the Housing Choice Voucher Program (Section 8)

Many affordable housing units are reserved for renters earning less than a certain percentage of the Area Median Income (AMI). AMI stands for Area Median Income, which is the midpoint income for a region, meaning half of households earn more, and half earn less. Affordable housing programs often use AMI to determine eligibility. 

For example: 

If a program serves households making 60% of AMI, it means you must earn 60% or less of Racine’s median income to qualify.

You can learn more about how AMI impacts eligibility - and see where you fall - by using our Racine Affordable Housing Eligibility tool.