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 | $870 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,670 |
| 5 Bedrooms | $1,937 |
| 6 Bedrooms | $2,169 |
| 7 Bedrooms | $2,343 |
| 8 Bedrooms | $2,460 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,400 | $303,949 | 0.46% | F |
U.S. Census Bureau data (2024)
In ZIP code 64163, the investment risks for Section 8 landlords are significant and should be carefully considered. Tenant turnover is a primary concern, as the market rent stands at $893, which is notably lower than the Fair Market Rent (FMR) of $1050 for fiscal year 2024. This discrepancy can lead to higher turnover rates as tenants seek better deals elsewhere. Additionally, vacancy exposure is a critical issue, especially given the lack of data on days on market (DOM), indicating potential difficulties in finding and retaining tenants.
The typical home value in this area is $299,120, while the median income is $59,511. These figures suggest that landlords may face challenges with deferred maintenance, as residents might struggle to afford improvements or repairs that are necessary but not covered under the Section 8 program. The financial burden of maintaining properties to meet housing quality standards without adequate compensation from tenants can be substantial.
However, these risks are tempered by the high renter share in the area, which is 46.7%. High renter density often correlates with increased demand for rental assistance vouchers, such as Section 8. This demand can provide a stable stream of tenants willing to pay the subsidized rent, thereby reducing the overall risk associated with vacancy and turnover.
Verdict: Moderate risk for a first-time Section 8 landlord.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.