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 |
|---|---|---|---|---|
| 1BR | $1,100 | $82,276 | 1.34% | A |
| 2BR | $1,240 | $113,220 | 1.1% | B |
| 3BR | $1,620 | $143,748 | 1.13% | B |
| 4BR | $1,940 | $171,937 | 1.13% | B |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 64053 in Independence, MO, provides a clear picture of potential investment returns. Using the Fair Market Rent (FMR) for a two-bedroom apartment at $1070 per month, the annualized rental income comes to $12,840. Against the median home value of $118,554, this translates into an implied gross yield of approximately 10.83%. This calculation is based on the formula for gross yield: (Annual Rental Income / Property Value) * 100.
In contrast, using the Zillow Observed Rent Index (ZORI) for a market rent of $1,085 per month, the annualized rental income increases to $13,020. The implied gross yield for this scenario is slightly higher at 11.00%. These figures provide a baseline for understanding the potential returns on investment in the area through Section 8 housing.
The 47.3% renter density in ZIP 64053 suggests that there is a significant portion of the population that relies on renting, including those who might be eligible for Section 8 assistance. However, the lack of data on days on market (DOM) makes it challenging to assess the speed at which properties can be rented out. Despite this, the FMR-based gross yield of 10.83% is likely more realistic for Section 8 investments due to the fixed nature of the rental payments under the program. While the market rent-based gross yield of 11.00% offers a slightly better return, it is subject to fluctuations and does not guarantee the same level of stability as the FMR.
Investors should consider the trade-off between the slightly higher market rent yields and the guaranteed stability of Section 8 rents when deciding on their investment strategy in ZIP 64053. The choice ultimately depends on their risk tolerance and the specific goals of their investment portfolio.
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.