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 | $1,010 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,240 |
| 3 Bedrooms | $1,620 |
| 4 Bedrooms | $1,940 |
| 5 Bedrooms | $2,250 |
| 6 Bedrooms | $2,520 |
| 7 Bedrooms | $2,722 |
| 8 Bedrooms | $2,858 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,240 | $176,940 | 0.7% | D |
| 3BR | $1,620 | $253,399 | 0.64% | D |
| 4BR | $1,940 | $324,132 | 0.6% | F |
| 5BR | $2,250 | $373,942 | 0.6% | D |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 64024, which encompasses Excelsior Springs, MO, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1050, while the market rent, measured by ZORI, stands at $1,434. This creates a difference of $384 per month, or approximately 36.57%, between what landlords can charge voucher tenants and the open-market rate.
The disparity means that landlords accepting Section 8 vouchers will be renting properties at a rate that is lower than the prevailing market conditions. In a context where the median home value is $243,192 and the median income is $77,895, the financial implications for landlords are substantial. With only 23.2% of residents being renters, competition for rental properties is relatively low, but the choice to accept Section 8 vouchers must be carefully weighed against the potential loss in rental income.
The cost of housing voucher tenants below open-market rates translates into a direct financial impact for landlords. While the federal government aims to provide affordable housing solutions through the Section 8 program, landlords in Excelsior Springs face the challenge of balancing their rental yields with the realities of the voucher system. The $384 monthly shortfall represents a considerable reduction in cash flow, especially when considering long-term investment strategies.
In conclusion, the gap between the FMR and the market rent highlights the trade-offs involved in participating in the Section 8 program. Landlords must decide whether the benefits of having a guaranteed tenant, albeit at a reduced rate, outweigh the financial implications of renting below market value. The decision should be informed by an understanding of the local economic landscape, including the median home values and incomes, to ensure a sustainable rental strategy.
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.