Section 8 Fair Market Rent (FMR) for ZIP 64069 - 2027
Location: Kansas City, MO | Metro: Kansas City, MO-KS HUD Metro FMR Area
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $1,260 |
| 1 Bedroom | $1,370 |
| 2 Bedrooms | $1,550 |
| 3 Bedrooms | $2,030 |
| 4 Bedrooms | $2,430 |
| 5 Bedrooms | $2,819 |
| 6 Bedrooms | $3,157 |
| 7 Bedrooms | $3,410 |
| 8 Bedrooms | $3,581 |
The decision to invest in ZIP 64069 under the Section 8 program hinges on three key factors based on the Fair Market Rent (FMR) of $1260 for fiscal year 2024. Let's break down the analysis:
1) Does the FMR of $1260 cover the debt service on your property?
- Yes: If the FMR can comfortably cover the monthly mortgage payment, property taxes, insurance, and maintenance costs, then proceeding with a purchase is financially viable.
- No: If the FMR does not sufficiently cover these expenses, purchasing in this area would result in a financial loss. This makes it an unsuitable investment for Section 8 purposes.
2) How does the market rent compare to the FMR?
- Above FMR: If the average market rent exceeds $1260, landlords might find themselves limited by the Section 8 payment standard. This could lead to lower profits or the need to find tenants willing to pay the difference between the market rate and the FMR.
- At or Below FMR: If the market rent is equal to or less than the FMR, the risk of having to subsidize the tenant's rent is minimized, making the ZIP code a more attractive option for Section 8 landlords.
3) Is there sufficient demand for rental properties?
- It Depends: The percentage of renters and the days on market (DOM) provide insight into the demand for rentals. If the majority of residents are renters and the DOM is relatively low, indicating quick turnover, this suggests strong demand. However, without specific percentages and DOM figures, a precise assessment cannot be made. Landlords should aim for a high percentage of renters and a low DOM to ensure steady occupancy and income.
In summary, ZIP 64069's suitability for Section 8 investments depends on whether the FMR of $1260 can cover your debt service, if the market rent aligns favorably with the FMR, and if there is sufficient demand among renters. These factors must be carefully considered before making any investment decisions.
Data Sources: FMR data from HUD (2027).
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.