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 | $1,340 |
| 1 Bedroom | $1,460 |
| 2 Bedrooms | $1,650 |
| 3 Bedrooms | $2,160 |
| 4 Bedrooms | $2,580 |
| 5 Bedrooms | $2,993 |
| 6 Bedrooms | $3,352 |
| 7 Bedrooms | $3,620 |
| 8 Bedrooms | $3,801 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,650 | $266,336 | 0.62% | D |
| 3BR | $2,160 | $331,866 | 0.65% | D |
| 4BR | $2,580 | $423,009 | 0.61% | D |
| 5BR | $2,993 | $522,361 | 0.57% | F |
U.S. Census Bureau data (2024)
ZIP 64083, located in Raymore, Missouri, within the Kansas City, MO-KS HUD Metro FMR Area, serves best as an appreciation play within a Section 8 portfolio strategy. The Family Monthly Rent (FMR) for ZIP 64083 in fiscal year 2024 is set at $1420, which is significantly below the market rent of $1894. This gap indicates that properties in this area can be rented out at higher rates once they move beyond the initial Section 8 contract period.
The median home value in ZIP 64083 stands at $360,032, suggesting a stable housing market with moderate property values. The low 0.2% price-cut share and a 32-day Days on Market (DOM) indicate that the real estate market in this area is competitive, but properties sell relatively quickly without needing significant price reductions. This combination supports the idea that investments here will likely appreciate over time, making it a strategic choice for long-term growth.
A key factor in favoring ZIP 64083 as an appreciation play is the relatively short DOM of 32 days. This implies that homes in this area are attractive to buyers, ensuring liquidity and potential for capital gains when the investment is sold. Additionally, the slight premium required for market rent over the FMR ($474 per month) means that once a property transitions from being part of a Section 8 program to the open market, it can generate higher rental income, enhancing overall profitability.
While the 21.0% renter share and median income of $101,667 suggest a diverse mix of homeowners and renters with a reasonable income level, these factors do not outweigh the strong case for appreciation. The income level supports the ability of residents to afford higher rents once the initial Section 8 contract ends, further bolstering the appreciation potential of properties in this ZIP code.
In conclusion, ZIP 64083 is most effectively positioned as an appreciation play within a Section 8 portfolio strategy. Its combination of competitive market conditions, moderate property values, and the potential for increased rental income post-Section 8 contract makes it a valuable asset for investors looking to capitalize on long-term growth.
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.