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 | $890 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,440 | $401,471 | 0.36% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 66020 reveals a market that balances between high yield and moderate stability, making it neither purely a high-yield/low-stability flip-style market nor a straightforward steady-cashflow zone. The Federal Market Rent (FMR) for ZIP 66020 in fiscal year 2024 is set at $1050, significantly higher than the current market rent of $927. This indicates a potential opportunity for landlords to increase rental income if they can position their properties competitively within the market.
However, the stability of the market is influenced by several factors. With only 13.8% of residents being renters, the demand for rental properties is relatively low compared to areas with higher percentages of renters. Additionally, the median household income of $78,594 suggests that while there is financial capacity among residents, the lower percentage of renters may limit the number of potential tenants who can afford the higher rents suggested by the FMR. The absence of data regarding days on market (DOM) further complicates the assessment of stability, as it would provide insight into how quickly properties are leased.
The median home value of $419,492 in ZIP 66020 contrasts sharply with the median household income, indicating a potentially challenging market for affordability. This could result in a situation where increasing rents to match the FMR might deter tenants, leading to periods of vacancy and reduced cash flow. On the other hand, the discrepancy between the FMR and the current market rent suggests that there is room for price adjustments without necessarily causing a significant drop in occupancy rates.
In conclusion, ZIP 66020 presents a scenario where landlords can achieve higher yields by aligning their rents closer to the FMR of $1050, but they must be cautious about the balance between pricing and tenant availability. The market is not highly volatile, given the lack of frequent turnover indicated by the N/A DOM figure, but the low percentage of renters and the high median home value imply that achieving steady cash flow requires careful management and possibly strategic marketing to attract the right tenants willing to pay higher rents.
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.