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 | $1,190 |
| 1 Bedroom | $1,290 |
| 2 Bedrooms | $1,460 |
| 3 Bedrooms | $1,910 |
| 4 Bedrooms | $2,280 |
| 5 Bedrooms | $2,645 |
| 6 Bedrooms | $2,962 |
| 7 Bedrooms | $3,199 |
| 8 Bedrooms | $3,359 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,460 | $145,902 | 1% | B |
| 3BR | $1,910 | $276,727 | 0.69% | D |
| 4BR | $2,280 | $326,528 | 0.7% | D |
| 5BR | $2,645 | $375,906 | 0.7% | D |
U.S. Census Bureau data (2024)
The ZIP code 64131 in Kansas City, MO, is situated within a diverse urban neighborhood that houses a total population of 21,942 residents. Nearly half of the residents, 49.3%, are renters, indicating a significant demand for rental properties. The median household income in this area is $64,201, which suggests a middle-class community capable of supporting various types of housing options. The median home value stands at $252,628, reflecting a stable real estate market with homes that are moderately priced.
Moving into the realm of rental economics, the Fair Market Rent (FMR) for ZIP 64131 in fiscal year 2024 is set at $1,260. This figure represents the government's benchmark for rental affordability and is closely tied to the availability of Section 8 vouchers. In contrast, the actual market rent, measured by Zillow's Observed Rental Index (ZORI), is slightly lower at $1,226. This gap between the FMR and market rent can be advantageous for landlords participating in the Section 8 program, as it allows them to potentially charge higher rents compared to the open market while still remaining within the affordable range for tenants.
Given these economic conditions, ZIP 64131 is well-suited for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the relatively stable median home value and the alignment of FMR with market rent make it an attractive location where they can rely on consistent cash flow without needing to actively manage property improvements. On the other hand, hands-on value-add buyers can leverage the slight disparity between FMR and market rent to invest in property upgrades, thereby increasing their rental income above the typical market rate while still being covered under the Section 8 program.
In conclusion, the demographics and economic landscape of ZIP 64131 present a balanced environment for real estate investment, particularly for those interested in the Section 8 market. Whether you prefer a passive investment strategy or an active approach, this neighborhood offers opportunities that align with your goals and the financial parameters set by the program.
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.