Location: Bourbon County, KS | Metro: Kansas City, MO-KS HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $840 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,710 |
| 5 Bedrooms | $1,984 |
| 6 Bedrooms | $2,222 |
| 7 Bedrooms | $2,400 |
| 8 Bedrooms | $2,520 |
U.S. Census Bureau data (2024)
Skeptical investors considering ZIP 66010 might raise several concerns regarding the feasibility of investing in rental properties here. Let's address these points directly using the available data.
Objection 1: Will Fair Market Rent (FMR) of $1050 for ZIP 66010 in fiscal year 2024 cover the mortgage on a $243,031 home?
The FMR of $1050 can indeed help cover the mortgage costs, but let's break it down. Assuming a typical 30-year fixed-rate mortgage with an interest rate around 5%, the monthly mortgage payment for a $243,031 home would be approximately $1300. This means that the FMR of $1050 falls short by about $250 per month. However, this calculation does not consider potential property appreciation, tax benefits, or other income streams that could offset the shortfall. It also assumes no down payment; with a 20% down payment, the mortgage cost would decrease significantly.
Objection 2: Is there enough renter demand at 9.1%?
The rental vacancy rate of 9.1% suggests that there is a moderate level of competition among landlords. While this percentage indicates a higher-than-average vacancy rate compared to national averages, it does not necessarily mean that demand is insufficient. In fact, a higher vacancy rate can sometimes indicate a larger pool of potential renters, which is beneficial for finding tenants quickly. However, the data does not provide insights into the trend of this rate over time or the reasons behind the current figure. To make a more informed decision, investors should research local economic trends and tenant preferences.
Objection 3: Will vouchers keep pace with market rents of $594?
The average voucher amount in ZIP 66010 is lower than the market rent of $594, which raises questions about the financial viability of accepting vouchers. However, it's important to note that voucher amounts can vary widely based on family size, income, and other factors. Additionally, the federal government periodically adjusts voucher amounts to reflect changes in the housing market. Investors should monitor these adjustments closely. Despite the lower average voucher amount, the data does not specify the maximum voucher amount available, which could potentially cover higher rents depending on the tenant's circumstances.
In summary, while there are valid concerns regarding the coverage of mortgage payments, the level of renter demand, and the adequacy of voucher amounts, the data provides a starting point for analysis. Investors should conduct further research into local economic conditions, property values, and the specifics of voucher programs to make a well-informed decision.
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.