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 | $1,280 |
| 1 Bedroom | $1,400 |
| 2 Bedrooms | $1,580 |
| 3 Bedrooms | $2,060 |
| 4 Bedrooms | $2,470 |
| 5 Bedrooms | $2,865 |
| 6 Bedrooms | $3,209 |
| 7 Bedrooms | $3,466 |
| 8 Bedrooms | $3,639 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,580 | $279,580 | 0.57% | F |
| 3BR | $2,060 | $347,987 | 0.59% | F |
| 4BR | $2,470 | $440,524 | 0.56% | F |
| 5BR | $2,865 | $619,959 | 0.46% | F |
U.S. Census Bureau data (2024)
Smithville, MO, located in Clay County and designated by ZIP code 64089, stands out among other areas due to its unique demographic and economic characteristics. With a population of 14,380, Smithville has a relatively low rental rate at 16.9%, indicating that most residents own their homes. The median income in the area is $101,009, which is higher than the national average, and the median home value is $377,503, reflecting a strong housing market.
The voucher economics in Smithville present an interesting opportunity for landlords and small-portfolio investors. The Fair Market Rent (FMR) for the area, set at $1,130 for fiscal year 2024, is notably lower than the Census-reported market rent of $1,294. This means that landlords participating in the Section 8 program can expect to receive slightly less than the typical market rent, but still benefit from a steady stream of income guaranteed by the government. The difference between the FMR and market rent suggests that there is a potential for landlords to attract tenants who might otherwise struggle to afford housing in Smithville due to the high median home value and rental rates.
Based on the data signature, Smithville appears to be a stable market. The high median income and home values indicate a prosperous community where homeownership is prevalent. However, the gap between the FMR and market rent also implies that there is a segment of the population that may rely on government assistance to find affordable housing. This stability provides a reliable environment for landlords and investors looking to participate in the Section 8 program, ensuring consistent demand for subsidized housing units.
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.