Location: Kansas City, MO | Metro: Kansas City, MO-KS HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,080 |
| 1 Bedroom | $1,180 |
| 2 Bedrooms | $1,330 |
| 3 Bedrooms | $1,740 |
| 4 Bedrooms | $2,080 |
| 5 Bedrooms | $2,413 |
| 6 Bedrooms | $2,703 |
| 7 Bedrooms | $2,919 |
| 8 Bedrooms | $3,065 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP 64743 reveals a significant gap between the Fair Market Rent (FMR) set by HUD and the actual market rent based on Census data. The FMR for the fiscal year 2024 is $1060, while the market rent stands at $625. This creates a gap of $435, or approximately 69.7%, between what voucher holders can afford and the open-market rental rates.
In ZIP 64743, where 16.1% of residents are renters, the median home value is $232,769, and the median household income is $53,875, renting to Section 8 tenants offers a unique opportunity for landlords. Given that the FMR exceeds the market rent, voucher tenants provide a stable source of income that is higher than what most local renters can afford. This makes it a yield play, as landlords can secure a consistent and above-average rental income, even if it's slightly below the FMR.
However, the discrepancy also highlights the potential financial burden for voucher recipients. To cover the difference between their voucher amount and the actual market rent, tenants would need additional resources, which might be challenging given the median income level. Landlords should consider the broader economic context when setting rents for voucher tenants to ensure they are accessible and sustainable for both parties.
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.