Location: Kansas City, MO | Metro: Kansas City, MO-KS HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,470 |
| 1 Bedroom | $1,600 |
| 2 Bedrooms | $1,810 |
| 3 Bedrooms | $2,370 |
| 4 Bedrooms | $2,830 |
| 5 Bedrooms | $3,283 |
| 6 Bedrooms | $3,677 |
| 7 Bedrooms | $3,971 |
| 8 Bedrooms | $4,170 |
U.S. Census Bureau data (2024)
The potential risks for investing in Section 8 properties in ZIP code 64102 are significant. First, consider the disparity between the market rent of $1,307 and the Fair Market Rent (FMR) of $1,190 for FY 2024. This difference suggests that landlords might face challenges in attracting tenants who can only afford the lower FMR rate, leading to higher tenant turnover. A high turnover rate not only disrupts the stability of the property but also incurs additional costs associated with finding new tenants and maintaining the premises.
Second, the vacancy exposure is another critical concern. The data shows that the days on market (DOM) is listed as N/A, which indicates an incomplete picture of how long properties typically remain vacant before being rented. Vacancy periods can be costly, especially when they extend beyond the norm, as they represent lost rental income and increased expenses for the landlord.
Third, the deferred maintenance exposure poses a risk due to the lack of specific figures regarding the typical home value and median income in the area. Without these details, it's challenging to assess the financial capacity of tenants to cover necessary repairs and maintenance. This uncertainty can lead to unexpected costs for the landlord, impacting the overall profitability of the investment.
However, these risks must be weighed against the favorable conditions present in ZIP 64102. With a 100.0% renter share, there is a high concentration of potential tenants, including those who rely on housing vouchers. This dense population of renters typically translates into a robust demand for affordable housing options, which can stabilize occupancy rates and reduce the likelihood of prolonged vacancies.
In conclusion, despite the risks posed by tenant turnover, vacancy exposure, and deferred maintenance, the high renter density in ZIP 64102 supports a strong demand for Section 8 properties. Therefore, the overall risk for a first-time Section 8 landlord in this area is moderate.
Data Sources: FMR data from HUD (2027). 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.