Location: Kansas City, MO | Metro: Kansas City, MO-KS HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,550 |
| 1 Bedroom | $1,680 |
| 2 Bedrooms | $1,910 |
| 3 Bedrooms | $2,490 |
| 4 Bedrooms | $2,990 |
| 5 Bedrooms | $3,468 |
| 6 Bedrooms | $3,884 |
| 7 Bedrooms | $4,195 |
| 8 Bedrooms | $4,405 |
U.S. Census Bureau data (2024)
The ZIP code 64065 presents several challenges for potential Section 8 landlords. Firstly, the tenant turnover rate can be problematic due to the difference between the market rent of $1,038 and the Fair Market Rent (FMR) of $1,050 for FY 2024. This slight discrepancy might not seem significant, but it can lead to higher turnover rates as tenants may struggle to cover the cost of rent, especially when other living expenses are factored in.
Vacancy exposure is another critical concern. The Days on Market (DOM) figure is currently unavailable, which makes it difficult to predict how long properties might remain vacant. Vacancies are particularly risky for Section 8 landlords because the program's rent payment schedule can delay cash flow if a property remains unoccupied for an extended period.
Deferred maintenance is also a potential issue. Without specific data on the typical home value and median income in ZIP 64065, it's challenging to assess the financial health of homeowners and their ability to maintain properties. However, deferred maintenance can result in costly repairs and renovations that may not be covered by the rental income, especially if the property is part of a small portfolio with limited financial reserves.
Despite these risks, there is a silver lining. The renter share in ZIP 64065 is 100%, indicating a robust demand for rental housing. High renter density typically translates into strong interest in voucher programs, which can help mitigate the risk of vacancies and ensure steady cash flow once a tenant is secured.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 64065 is moderate. While there are significant risks associated with tenant turnover and vacancy exposure, the high renter share provides a strong foundation for demand. Careful management and a thorough understanding of the local market can help navigate these challenges effectively.
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.