Location: Franklin County, KS | Metro: Lawrence, KS MSA
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 | $820 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $1,810 |
| 5 Bedrooms | $2,100 |
| 6 Bedrooms | $2,352 |
| 7 Bedrooms | $2,540 |
| 8 Bedrooms | $2,667 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,080 | $293,331 | 0.37% | F |
| 3BR | $1,500 | $340,455 | 0.44% | F |
| 4BR | $1,810 | $436,877 | 0.41% | F |
| 5BR | $2,100 | $543,469 | 0.39% | F |
U.S. Census Bureau data (2024)
The analysis for the Section 8 program in ZIP code 66006, centered around Baldwin City, KS, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $930, while the Census ACS reports the market rent at $1,113. This means landlords can expect to receive $183 less per month through the Section 8 voucher program compared to the open-market rental rate, representing a shortfall of approximately 16.4%.
In Baldwin City, where 28.9% of residents are renters, the median home value stands at $361,874, and the median household income is $80,960. These figures suggest a relatively stable local economy, but they also highlight the financial implications for landlords who choose to participate in the Section 8 program. The difference between the FMR and the market rent indicates that landlords would be renting their properties below the prevailing market rate, which could impact their overall investment yield.
The cost of housing voucher tenants below open-market rates is twofold. Firstly, it affects the cash flow and profitability of the rental property. Secondly, it might influence the maintenance standards and quality of the units offered under the Section 8 program, as landlords aim to balance lower rents with higher costs of maintaining a diverse tenant base. Despite these challenges, the program offers a reliable source of income, backed by the government, ensuring timely payments even when tenants face financial difficulties.
To put this into perspective, if a landlord has a portfolio of ten rental units in ZIP 66006, participating in the Section 8 program would result in a total monthly revenue reduction of $1,830 compared to renting at market rates. This gap underscores the importance of understanding the local rental market and the financial realities of the Section 8 program before committing to it as an investment strategy.
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.