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 | $1,020 |
| 1 Bedroom | $1,110 |
| 2 Bedrooms | $1,250 |
| 3 Bedrooms | $1,640 |
| 4 Bedrooms | $1,960 |
| 5 Bedrooms | $2,274 |
| 6 Bedrooms | $2,547 |
| 7 Bedrooms | $2,751 |
| 8 Bedrooms | $2,889 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,640 | $365,162 | 0.45% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP code 66026 does not favor Section 8 tenants. The Federal Market Rent (FMR) for the area is set at $1070 for fiscal year 2024, which is significantly lower than the average market rent of $1,600 reported by the Census Bureau's American Community Survey (ACS). Landlords would need to consider if they can sustain a rental income that is approximately $530 less per unit compared to market rates.
Acquisition in ZIP 66026 is moderately affordable with a median home value of $341,113. However, due to the lack of specific data on days on market (DOM) and the percentage of homes needing price cuts to sell, it is difficult to assess the ease of acquiring properties. These metrics are crucial for understanding how quickly and efficiently you can turn over your investment portfolio.
Tenant demand in ZIP 66026 is relatively low. With a total population of 840 and only 19.6% being renters, there are fewer potential Section 8 tenants in the area. This translates to a limited pool of 165 individuals who might be eligible for Section 8 housing, based on the population and renter share percentages.
Verdict: While the median home value suggests that property acquisition is feasible, the significant disparity between the FMR and market rent rates makes it challenging for landlords to break even when renting to Section 8 tenants. Additionally, the low renter share indicates limited tenant demand, further complicating the viability of Section 8 investments in ZIP 66026. Landlords should proceed with caution and carefully evaluate their financial models before committing to this market segment.
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.