Location: Kansas City, MO | Metro: Kansas City, MO-KS 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 | $880 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,690 |
| 5 Bedrooms | $1,960 |
| 6 Bedrooms | $2,195 |
| 7 Bedrooms | $2,371 |
| 8 Bedrooms | $2,490 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,410 | $231,184 | 0.61% | D |
U.S. Census Bureau data (2024)
The Section 8 market in ZIP 64001, part of the Kansas City, MO-KS HUD Metro FMR Area, offers a clear advantage to landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for the area is set at $1110 per month for FY 2024, which significantly exceeds the market rent reported by the Census ACS at $783 per month. This means that voucher tenants will generally cashflow positively at the HUD FMR rate, providing a steady and reliable income stream for property owners.
To further analyze the investment potential, consider the median home value in ZIP 64001, which stands at $214,292. Using the HUD FMR of $1110, we can calculate a rent-to-price ratio of approximately 0.65%. This ratio indicates that the rental income generated by properties in this area is relatively low compared to the median home value, suggesting that appreciation rather than rental income might be the primary driver of investment returns.
However, given the significant gap between the HUD FMR and the actual market rent, landlords can expect to see positive cashflows even without premium units. This scenario supports the idea that stability and cashflow are strong investor angles in this market. While appreciation could also play a role, the immediate financial benefit from higher-than-market rents makes cashflow the most compelling argument for investing in this ZIP code.
In conclusion, the strongest investor angle in ZIP 64001 is the potential for stable and positive cashflow due to the favorable difference between HUD FMR rates and the local market rent.
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.