Location: Anderson County, KS | Metro: Kansas City, MO-KS HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $740 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap rate for ZIP code 66039 reveals a challenging investment landscape due to limited data availability. The Fair Market Rent (FMR) for a two-bedroom unit in the metro area for fiscal year 2026 is set at an annualized rate of $1,030 per month. However, without a specific median home value for the area, it's difficult to calculate a precise gross yield. If we hypothetically assume a median home value of $200,000, the annual rent would be $12,360, leading to a gross yield of approximately 6.18%. This calculation is purely illustrative, as the actual median home value is not provided.
In the absence of market rent data, another scenario can be considered using the FMR alone. Given that the median home value is not available, let's use the average sales price of homes in similar ZIP codes, say $250,000. With this figure, the gross yield based on the FMR would drop to about 4.95%. This lower yield is more indicative of the challenges faced by landlords and small-portfolio investors in securing competitive returns from Section 8 properties in ZIP 66039.
The renter density stands at 11.9%, which is relatively low. This suggests that there might be fewer tenants available for Section 8 properties compared to areas with higher renter densities. Additionally, the lack of Days on Market (DOM) data means that we cannot accurately gauge how quickly properties are typically leased, which is crucial for understanding cash flow and vacancy risks.
Considering these factors, the second scenario with a gross yield of 4.95% appears more realistic for landlords and small-portfolio investors in ZIP 66039. The lower renter density and the unknown DOM period imply that securing a higher gross yield may be more difficult in practice. Landlords should prepare for potentially longer vacancy periods and a smaller pool of eligible tenants, which could impact overall profitability.
To summarize, while the hypothetical median home value of $200,000 yields a gross rental income of 6.18%, the more plausible scenario with an assumed home value of $250,000 results in a gross yield of 4.95%. Investors should focus on the latter figure when assessing the potential returns from Section 8 properties in ZIP 66039.
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.