Location: Kansas City, MO | Metro: Kansas City, MO-KS HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,700 |
| 1 Bedroom | $1,850 |
| 2 Bedrooms | $2,090 |
| 3 Bedrooms | $2,730 |
| 4 Bedrooms | $3,270 |
| 5 Bedrooms | $3,793 |
| 6 Bedrooms | $4,248 |
| 7 Bedrooms | $4,588 |
| 8 Bedrooms | $4,817 |
U.S. Census Bureau data (2024)
The rent math for ZIP 64120 does not align favorably with federal guidelines. The Federal Market Rent (FMR) for the area is set at $1050 for fiscal year 2024, while the actual market rent, as indicated by ZORI, stands at $1,544. This discrepancy means that properties renting above the FMR will struggle to attract tenants eligible for Section 8 subsidies.
Acquisition in ZIP 64120 appears to be reasonably affordable, with a median home value of $83,845. However, the lack of data on days on market (DOM) and the percentage of homes requiring price cuts suggests that there might be some hidden challenges in acquiring properties at favorable prices. Landlords should conduct thorough due diligence to understand the local real estate dynamics fully.
Tenant demand is strong in ZIP 64120, with a population of 552, where 92.5% are renters. This high percentage of renters indicates a robust market for rental properties, suggesting that once a property is acquired and rented out, it is likely to remain occupied.
In summary, while the high tenant demand and relatively low median home values make ZIP 64120 an attractive investment area, the significant gap between the FMR and market rents poses a challenge for landlords aiming to participate in the Section 8 program. Properties must be priced below the market average to meet FMR criteria, which could impact profitability. Nonetheless, the strong rental market supports the idea that well-priced, quality rental units can be successful in this area.
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.