Location: Kansas City, MO | Metro: Kansas City, MO-KS HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $780 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 64650 operate under specific financial guidelines designed to balance affordability for tenants and sustainability for landlords. For a two-bedroom unit, the SAFMR (Small Area Fair Market Rent) for FY 2024 is set at $1050. This figure represents the maximum amount that the housing authority will pay for rent in this specific ZIP code. However, it's important to note that the local market rent, according to the Census ACS, runs at $770 for a similar unit.
A landlord participating in the Section 8 program receives a reimbursement from the government for the difference between the tenant’s contribution and the total rent. The tenant’s portion is typically 30% of their adjusted income, but there are minimum and maximum limits. In ZIP 64650, if we assume an average tenant contribution of $315 (which is 30% of the local market rent), the landlord would receive the remaining amount from the government to reach the SAFMR of $1050. This means the landlord would get an additional $735 from the housing authority.
In addition to the base rent, landlords also receive utility allowances. These allowances vary based on the number of bedrooms and the specific utilities included. For a two-bedroom unit, the allowance can range from $150 to $200 per month, depending on the housing authority’s policies and the utilities covered.
To illustrate, if the utility allowance is $175, the total monthly reimbursement a landlord would receive for a two-bedroom unit is $905 ($735 for rent plus $175 for utilities). This is calculated based on the assumption that the tenant contributes $315 towards rent and utilities, bringing the total collected to $1080.
Given these figures, there is a surplus when comparing the SAFMR to the local market rent. The typical surplus for a two-bedroom unit in ZIP 64650 is $280 per month ($1050 - $770). This surplus provides a buffer for landlords, ensuring that they receive a higher payment than the local market average, thus making participation in the Section 8 program financially viable.
Data Sources: FMR data from HUD (2027). 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.