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 | $980 |
| 1 Bedroom | $1,060 |
| 2 Bedrooms | $1,200 |
| 3 Bedrooms | $1,570 |
| 4 Bedrooms | $1,880 |
| 5 Bedrooms | $2,181 |
| 6 Bedrooms | $2,443 |
| 7 Bedrooms | $2,638 |
| 8 Bedrooms | $2,770 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,200 | $166,554 | 0.72% | D |
| 3BR | $1,570 | $260,206 | 0.6% | D |
U.S. Census Bureau data (2024)
The FMR exceeds the market rent, making this a prime opportunity for landlords and small-portfolio investors. Voucher tenants under the Section 8 program can help fill this gap, ensuring that properties are rented at or near the FMR. Given that only 14.7% of residents in the area are renters, the competition for rental properties is relatively low, allowing landlords to capture a higher rent rate.
In the broader context of ZIP 64077, the median home value is $229,758, and the median income is $75,956. These figures suggest that the local economy supports homeownership but also provide a stable base for rental investments. Landlords who accept Section 8 vouchers can benefit from a consistent and government-backed rental income stream, which is particularly valuable given the current economic conditions.
The discrepancy between the FMR and market rent indicates that landlords accepting voucher tenants can effectively turn this into a yield play. By renting to voucher holders, they can achieve higher yields compared to open-market rates, thus maximizing their investment returns.
Landlords should be aware of the potential administrative burden associated with participating in the Section 8 program. However, the financial benefits outweigh these challenges, especially considering the stable tenant pool and the government's commitment to affordable housing.
In summary, the gap between the FMR and market rent in ZIP 64077 presents a strategic advantage for landlords willing to participate in the Section 8 program. It offers an opportunity to generate higher yields and capitalize on the local economic environment.
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.