Location: Johnson County, 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 | $730 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,610 |
| 5 Bedrooms | $1,868 |
| 6 Bedrooms | $2,092 |
| 7 Bedrooms | $2,259 |
| 8 Bedrooms | $2,372 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $960 | $161,218 | 0.6% | F |
| 3BR | $1,330 | $295,993 | 0.45% | F |
| 4BR | $1,610 | $383,543 | 0.42% | F |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in ZIP 64040 under the Section 8 program are significant. Tenant turnover poses a notable challenge, with market rents at $761 falling well below the Fair Market Rent (FMR) of $1060 for FY 2024. This gap suggests that tenants might struggle to maintain market-level rental payments, leading to higher turnover rates and increased costs for landlords. Additionally, vacancy exposure is a concern, as the Days on Market (DOM) figure is currently unavailable, indicating a lack of data on how quickly properties are rented out. This uncertainty can lead to prolonged periods without rental income, which can be financially burdensome. The deferred maintenance exposure is also substantial, given the typical home value of $286,535 and a median income of $71,886. These figures suggest that residents might have limited financial capacity to cover unexpected maintenance costs, shifting the burden onto landlords.
Despite these challenges, there are mitigating factors that reduce the overall risk. The renter share in ZIP 64040 is 17.5%, which is relatively high. High renter density generally correlates with higher demand for housing vouchers, such as those offered through the Section 8 program. This demand can provide a stable source of rental income, even if individual market rents are lower. Moreover, the presence of a robust voucher system can help offset the financial strain of deferred maintenance and other costs associated with property management.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.