Location: Kansas City, MO | Metro: Kansas City, MO-KS HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,000 |
| 1 Bedroom | $1,110 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,630 |
| 4 Bedrooms | $1,940 |
| 5 Bedrooms | $2,250 |
| 6 Bedrooms | $2,520 |
| 7 Bedrooms | $2,722 |
| 8 Bedrooms | $2,858 |
U.S. Census Bureau data (2024)
The ZIP code 64028, located within the Kansas City, MO-KS HUD Metro FMR Area, serves as a strong cash-flow anchor within a Section 8 portfolio strategy. This conclusion is based on the significant spread between the Fair Market Rent (FMR) set by HUD for fiscal year 2024 and the actual market rent observed in the area. The HUD FMR for ZIP 64028 is set at $1340 for a standard unit, while the market rent stands at $942. This means that landlords participating in the Section 8 program can expect to receive a higher rental income compared to what they would typically get from the private market, thus enhancing their cash flow.
The data indicates that the median home value is not available, which suggests that the focus should be on the rental market rather than on homeownership trends. Similarly, the lack of information regarding the percentage price cut share and days on market (DOM) for homes further emphasizes the importance of the rental market dynamics in this area.
With a renter share of 11.3%, the population in ZIP 64028 leans towards renting, making it a suitable location for rental investments. Additionally, the median income of $124,375 provides insight into the economic stability of the area, indicating that residents have the financial capacity to support rental prices that align with the HUD FMR.
In summary, ZIP 64028 is best categorized as a cash-flow anchor within a Section 8 portfolio due to the substantial difference between the HUD FMR and the local market rent. Landlords can benefit from higher guaranteed rents through the Section 8 program, thereby improving their overall financial performance.
Data Sources: FMR data from HUD (2027). 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.