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 | $1,300 |
| 1 Bedroom | $1,410 |
| 2 Bedrooms | $1,600 |
| 3 Bedrooms | $2,090 |
| 4 Bedrooms | $2,500 |
| 5 Bedrooms | $2,900 |
| 6 Bedrooms | $3,248 |
| 7 Bedrooms | $3,508 |
| 8 Bedrooms | $3,683 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,600 | $296,019 | 0.54% | F |
| 3BR | $2,090 | $339,317 | 0.62% | D |
| 4BR | $2,500 | $402,349 | 0.62% | D |
| 5BR | $2,900 | $501,998 | 0.58% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 64078, which encompasses Peculiar, MO, in Cass County, are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for FY 2024 is set at $1180. This is the maximum amount that the Housing Choice Voucher program will pay toward rent for such a unit. However, the local market rent, as measured by ZORI (Zillow Observed Rent Index), stands at $1,689, indicating a significant gap between the voucher payment and the market rate.
To understand what a landlord can expect from a voucher, it's essential to factor in both the tenant's portion of the rent and any utility allowances. Typically, the tenant is responsible for paying 30% of their adjusted income toward rent. For simplicity, let's assume an average adjusted income that results in a tenant contribution of $350 towards rent. Utility allowances vary but are generally around $200 per month for a two-bedroom unit. Therefore, the total reimbursement a landlord would receive from a Section 8 voucher for a 2BR apartment would be the sum of the SAFMR and the utility allowance, minus the tenant's portion.
In this scenario, the landlord would receive $1180 (SAFMR) + $200 (utility allowance) - $350 (tenant contribution) = $1030 per month. This is the actual amount a landlord can expect to be paid by the government and the tenant combined for a two-bedroom apartment in ZIP 64078.
Given that the market rent is $1,689, there is a substantial reimbursement gap. Landlords would have to absorb the difference between the voucher payment and the market rate, which amounts to $1,689 - $1,030 = $659 per month. This gap represents the shortfall between what the market demands and what the Section 8 program provides.
It's important to note that while this analysis provides a clear picture of the financial landscape for landlords participating in the Section 8 program in ZIP 64078, individual circumstances may vary. The SAFMR is specific to this ZIP code, meaning it is tailored to reflect local rental market conditions. However, the reimbursement gap remains consistent with the figures provided, presenting a challenge for landlords seeking to balance participation in the program with maintaining competitive rental income.
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.