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 | $1,190 |
| 1 Bedroom | $1,290 |
| 2 Bedrooms | $1,460 |
| 3 Bedrooms | $1,910 |
| 4 Bedrooms | $2,280 |
| 5 Bedrooms | $2,645 |
| 6 Bedrooms | $2,962 |
| 7 Bedrooms | $3,199 |
| 8 Bedrooms | $3,359 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,460 | $140,067 | 1.04% | B |
| 3BR | $1,910 | $187,901 | 1.02% | B |
| 4BR | $2,280 | $223,531 | 1.02% | B |
U.S. Census Bureau data (2024)
Sugar Creek, Missouri, located in the ZIP code 64054, is part of the larger Kansas City, MO-KS HUD Metro Fair Market Rent (FMR) area. This ZIP code can serve as a cash-flow anchor within a Section 8 portfolio strategy due to the significant spread between the FMR and the market rent.
The HUD Fair Market Rent for a one-bedroom apartment in ZIP 64054 for fiscal year 2024 is set at $1120. In contrast, the current market rent stands at $1,022. This means that properties participating in the Section 8 program can expect to receive a higher rental income compared to the non-subsidized market, providing a stable and predictable cash flow. The median home value in Sugar Creek is $159,656, which indicates that the housing market here is relatively affordable and accessible for low-income households eligible for Section 8 assistance.
The primary reason to consider ZIP 64054 as a cash-flow anchor is the guaranteed rent through the Section 8 voucher program. Landlords and small-portfolio investors can rely on receiving the FMR rate, which is above the market rate, ensuring that their properties generate positive cash flow even if market rents fluctuate. This stability is particularly valuable in a diversified investment portfolio where some assets might underperform due to economic downturns or other factors.
While the appreciation potential in Sugar Creek may not be as strong as in areas with rapidly rising property values, the consistent cash flow from Section 8 properties provides a solid foundation for long-term investment. The median income of $59,719 suggests that there is a reasonable demand for affordable housing, making it likely that Section 8 vouchers will continue to be utilized in the area.
In summary, ZIP 64054 is best suited as a cash-flow anchor in a Section 8 portfolio strategy. With a higher FMR rate compared to market rent, landlords can expect steady income while also serving an area with a significant need for affordable housing.
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.