Location: Lawrence, KS | 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 | $1,250 |
| 1 Bedroom | $1,360 |
| 2 Bedrooms | $1,540 |
| 3 Bedrooms | $2,020 |
| 4 Bedrooms | $2,420 |
| 5 Bedrooms | $2,807 |
| 6 Bedrooms | $3,144 |
| 7 Bedrooms | $3,396 |
| 8 Bedrooms | $3,566 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,540 | $230,730 | 0.67% | D |
| 3BR | $2,020 | $294,569 | 0.69% | D |
| 4BR | $2,420 | $387,650 | 0.62% | D |
U.S. Census Bureau data (2024)
The potential risks for investing in Section 8 properties in ZIP code 66021, Edgerton, KS, include significant tenant turnover due to the disparity between the market rent of $1,288 and the Fair Market Rent (FMR) of $1,190 for fiscal year 2024. This discrepancy can lead to challenges in attracting tenants who qualify for the program, thereby increasing the likelihood of vacancies. The average days on market (DOM) is not available, which makes it difficult to predict how quickly a property might fill when vacant. However, the typical home value of $301,451 paired with a median household income of $88,125 suggests that there may be a higher risk of deferred maintenance, as tenants may not have the financial resources to cover unexpected repairs or upkeep.
Despite these concerns, the area has a relatively high renter share at 10.2%. A high proportion of renters often translates into a greater demand for housing vouchers, potentially stabilizing occupancy rates. This dynamic can offset some of the risks associated with vacancy and maintenance, making the property more attractive to landlords willing to navigate the Section 8 program's requirements.
Verdict: Moderate risk for a first-time Section 8 landlord.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.