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 | $1,170 |
| 1 Bedroom | $1,270 |
| 2 Bedrooms | $1,440 |
| 3 Bedrooms | $1,880 |
| 4 Bedrooms | $2,250 |
| 5 Bedrooms | $2,610 |
| 6 Bedrooms | $2,923 |
| 7 Bedrooms | $3,157 |
| 8 Bedrooms | $3,315 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,440 | $231,387 | 0.62% | D |
| 3BR | $1,880 | $276,381 | 0.68% | D |
| 4BR | $2,250 | $357,780 | 0.63% | D |
| 5BR | $2,610 | $442,708 | 0.59% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 64057, Independence, MO, are structured around the SAFMR (Small Area Fair Market Rent) which is specifically tailored for this ZIP code. For a two-bedroom apartment in FY 2024, the SAFMR is set at $1220. This figure represents the maximum amount that the government will reimburse landlords for renting out their units under the Section 8 program.
In contrast, the local market rent for a two-bedroom unit, as measured by ZORI (Zillow Observed Rent Index), is $1445. This means that landlords could potentially charge a higher rent if they were not participating in the Section 8 program.
When a landlord enters into a Section 8 agreement, the actual payment received includes both the government reimbursement and the tenant's portion of the rent. Typically, the tenant is required to pay 30% of their adjusted income towards the rent. Additionally, there are utility allowances that can vary but generally do not exceed $300 per month.
To illustrate, let’s assume a tenant's adjusted income is $1000. Their portion of the rent would be 30% of this, equating to $300. If we add an average utility allowance of $300, the total additional payment from the tenant would be $600. Thus, the landlord would receive a total of $1820 ($1220 from the government + $600 from the tenant).
However, it’s important to note that the SAFMR of $1220 is the ceiling for government reimbursement. If the local market rent is $1445, the landlord would still only receive $1220 from the government, even though the market value is higher. Therefore, the landlord’s actual reimbursement would be $1220 plus the tenant’s contribution, which is based on their income and not the market rent.
In ZIP 64057, the typical reimbursement gap for a two-bedroom unit would be $225 ($1445 - $1220), meaning the landlord would not receive the full market rent through the voucher program. However, the tenant's contribution can sometimes bridge this gap, depending on their income level. If the tenant’s contribution does not cover the difference between the SAFMR and the market rent, the landlord faces a shortfall. Conversely, if the tenant's contribution exceeds the difference, the landlord might see a surplus.
Given these parameters, landlords should carefully assess the potential financial impact before agreeing to participate in the Section 8 program. It’s also crucial to understand that while the SAFMR is fixed, the tenant’s contribution can fluctuate, affecting the overall reimbursement.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.