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 | $930 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $1,800 |
| 5 Bedrooms | $2,088 |
| 6 Bedrooms | $2,339 |
| 7 Bedrooms | $2,526 |
| 8 Bedrooms | $2,652 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,500 | $379,225 | 0.4% | F |
| 4BR | $1,800 | $627,735 | 0.29% | F |
U.S. Census Bureau data (2024)
The ZIP code 64150, located in the Kansas City, MO-KS HUD Metro FMR Area, presents a unique opportunity for Section 8 investors. The HUD Fair Market Rent (FMR) for the area is set at $1050 for the fiscal year 2024. In comparison, the market rent, as indicated by the Zillow Observed Rental Index (ZORI), stands at $1,790. This significant gap between the HUD FMR and the actual market rent means that voucher tenants will only cashflow in premium units. Standard units rented at the HUD FMR will not cover the market rent, leading to a financial loss for landlords who do not have premium properties.
To further analyze the investment potential, consider the median home value in ZIP 64150, which is $481,893. Using this figure, we can calculate the rent-to-price ratio, which is approximately 0.37%. This low ratio suggests that rental income alone might not be sufficient to justify the high purchase price of homes in this area. However, it also implies that the real estate in this area is relatively stable and less likely to experience rapid depreciation.
Note that the data on median Days on Market (DOM) and the percentage of price cuts are not available, but these metrics would typically be relevant when assessing the rent-versus-buy dynamics. Given the absence of such data, the primary focus remains on the cash flow and stability aspects of the market.
The strongest angle for investors in ZIP 64150 is stability. While cash flow may be challenging due to the disparity between HUD FMR and market rents, the robust median home value indicates that investments in this area are likely to hold their value over time, providing a solid foundation for long-term real estate strategies.
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.