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 | $1,430 |
| 1 Bedroom | $1,550 |
| 2 Bedrooms | $1,760 |
| 3 Bedrooms | $2,300 |
| 4 Bedrooms | $2,750 |
| 5 Bedrooms | $3,190 |
| 6 Bedrooms | $3,573 |
| 7 Bedrooms | $3,859 |
| 8 Bedrooms | $4,052 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,300 | $238,932 | 0.96% | C |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 64161 is centered around the discrepancy between the Fair Market Rent (FMR) set at $1430 for fiscal year 2024 and the actual market rent of $1313 according to the Census ACS data. This gap stands at $117, representing an 8.9% difference between the two figures.
In this scenario where the FMR exceeds the market rent, landlords and small-portfolio investors can leverage the situation to their advantage. Voucher tenants provide a stable and guaranteed income stream due to the federal government's role in covering the majority of the rent. The consistent payment from the Housing Choice Voucher program ensures that landlords receive the full FMR amount, which is higher than what they could typically get from non-voucher tenants paying market rates. This makes ZIP 64161 a prime location for maximizing rental yields.
However, it is important to consider the broader context. In ZIP 64161, 25.0% of residents are renters, indicating a moderate demand for rental properties. The median home value is $199,489, while the median household income is $53,333. These factors suggest that the area has a mix of affordable and slightly more expensive homes, but with incomes that might not fully support higher rents without assistance.
The higher FMR in comparison to market rent also implies that landlords who accept voucher tenants are effectively subsidizing housing costs for low-income families. This subsidy comes in the form of renting units at a rate above what the market would naturally bear, thus ensuring that voucher holders can afford decent housing. For landlords, this means foregoing the opportunity to potentially charge higher rents to non-subsidized tenants, but in exchange, they secure a reliable source of income that is pegged to the government's FMR standards.
To summarize, the $117 gap between the FMR and the market rent in ZIP 64161 presents an opportunity for yield enhancement through the acceptance of Section 8 vouchers. Landlords should weigh the benefits of stable, government-backed rental income against the potential drawbacks of renting below market rates.
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.