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 | $1,440 |
| 1 Bedroom | $1,560 |
| 2 Bedrooms | $1,770 |
| 3 Bedrooms | $2,310 |
| 4 Bedrooms | $2,770 |
| 5 Bedrooms | $3,213 |
| 6 Bedrooms | $3,599 |
| 7 Bedrooms | $3,887 |
| 8 Bedrooms | $4,081 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,560 | $197,693 | 0.79% | D |
| 2BR | $1,770 | $346,279 | 0.51% | F |
| 3BR | $2,310 | $542,816 | 0.43% | F |
| 4BR | $2,770 | $944,753 | 0.29% | F |
| 5BR | $3,213 | $1,375,560 | 0.23% | F |
U.S. Census Bureau data (2024)
To incorporate ZIP 64112 into a Section 8 portfolio strategy, one must consider its financial metrics and market dynamics. This area, part of the Kansas City, MO-KS HUD Metro FMR Area, stands out as a cash-flow anchor. The primary reason is the significant spread between the Fair Market Rent (FMR) set by HUD for fiscal year 2024, which is $1500, and the current market rent of $1,394. This means that properties in ZIP 64112 can generate higher rental income when leased through Section 8 vouchers compared to market rents.
The median home value in ZIP 64112 is $418,554, indicating a relatively stable housing market. However, the focus on cash flow rather than appreciation makes this ZIP an ideal choice for landlords and small-portfolio investors looking to ensure steady income. The low 0.3% price-cut share suggests that there is little pressure to reduce asking prices, maintaining a robust rental rate. Additionally, the average Days on Market (DOM) being N/A implies either a very efficient local real estate market or limited data, but it does not detract from the strong cash-flow potential.
While the 53.3% renter share and median income of $100,736 could make ZIP 64112 a candidate for diversification, the primary advantage here is its role as a cash-flow anchor. The higher guaranteed rental income from Section 8 vouchers, combined with the stability implied by the median home value, provides a solid foundation for generating predictable returns.
In conclusion, ZIP 64112 should be considered primarily as a cash-flow anchor within a Section 8 portfolio strategy due to the favorable spread between FMR and market rents. This positioning allows investors to leverage the program's fixed rental rates to secure consistent income streams, making it a reliable component of their investment portfolios.
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.