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 | $1,530 |
| 1 Bedroom | $1,660 |
| 2 Bedrooms | $1,880 |
| 3 Bedrooms | $2,460 |
| 4 Bedrooms | $2,940 |
| 5 Bedrooms | $3,410 |
| 6 Bedrooms | $3,819 |
| 7 Bedrooms | $4,125 |
| 8 Bedrooms | $4,331 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,880 | $295,257 | 0.64% | D |
| 3BR | $2,460 | $386,236 | 0.64% | D |
| 4BR | $2,940 | $469,616 | 0.63% | D |
| 5BR | $3,410 | $578,691 | 0.59% | F |
U.S. Census Bureau data (2024)
The Section 8 real estate analysis for ZIP code 64145 in Kansas City, MO, reveals a notable gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1390, while the Census American Community Survey (ACS) reports the market rent at $1498. This discrepancy represents a $108 difference, which translates to approximately 7.9% of the market rent.
In this scenario, where the FMR is less than the market rent, landlords accepting Section 8 vouchers face the cost of renting their properties below the open-market rate. The lower FMR means that voucher holders can only pay up to $1390 per month, leaving landlords to either absorb the remaining $108 as a loss or seek ways to mitigate it through other means such as increased efficiency or reduced operating costs.
Kansas City's broader real estate context provides additional insights. With 13.6% of residents being renters, the demand for affordable housing is significant. However, the median home value stands at $413,865, indicating a relatively high cost of homeownership. The median income of $95,159 suggests that many residents have the financial capacity to afford market rents, but the presence of Section 8 voucher holders highlights the ongoing need for subsidized housing options.
Given these conditions, landlords must carefully consider the implications of accepting Section 8 vouchers. While the guaranteed rental income can be a stabilizing factor, the lower FMR compared to market rent means they will not achieve the highest possible yield. Instead, the focus shifts to maintaining a steady stream of income and ensuring the property remains attractive to voucher holders, who represent a consistent tenant base despite the slightly reduced rental revenue.
To summarize, the gap between FMR and market rent in ZIP 64145 underscores the challenges and considerations for landlords participating in the Section 8 program. Accepting vouchers ensures a reliable tenant and a government-backed income stream, albeit at a rate that is $108 below the market average. This decision should be made in light of the overall Kansas City market dynamics, including the mix of renters and homeowners, and the city's median income levels.
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.