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 | $1,890 |
| 1 Bedroom | $2,050 |
| 2 Bedrooms | $2,320 |
| 3 Bedrooms | $3,030 |
| 4 Bedrooms | $3,630 |
| 5 Bedrooms | $4,211 |
| 6 Bedrooms | $4,716 |
| 7 Bedrooms | $5,093 |
| 8 Bedrooms | $5,348 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,320 | $336,937 | 0.69% | D |
| 3BR | $3,030 | $351,784 | 0.86% | C |
| 4BR | $3,630 | $485,846 | 0.75% | D |
| 5BR | $4,211 | $610,283 | 0.69% | D |
U.S. Census Bureau data (2024)
The potential risks for investing in Section 8 properties in ZIP code 64157, Kansas City, MO, include significant tenant turnover, which can be costly. The market rent stands at $2,403, while the Fair Market Rent (FMR) for FY 2024 is set at $1,890. This discrepancy suggests that tenants receiving vouchers may struggle to afford additional costs beyond the FMR, leading to higher turnover rates. Furthermore, there is a notable vacancy exposure due to the average days on market (DOM) being only 13 days, indicating a quick rental cycle but also a potential lack of thorough vetting processes for tenants.
Another risk factor is deferred maintenance. With a typical home value of $423,111 and a median household income of $149,526, the financial burden of maintaining properties to meet Section 8 standards may fall heavily on the landlord. Ensuring compliance with housing quality standards can be expensive, especially when the income levels do not fully cover the cost of necessary repairs and upgrades.
However, these risks must be weighed against the high density of renters in the area. The 9.1% renter share indicates a substantial number of individuals who may require housing assistance through Section 8 vouchers. A higher concentration of renters often translates into increased demand for subsidized housing units, potentially stabilizing occupancy rates over time. Additionally, the high renter population might provide a larger pool of applicants, reducing the likelihood of prolonged vacancies.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.