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 | $1,000 |
| 1 Bedroom | $1,090 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,610 |
| 4 Bedrooms | $1,920 |
| 5 Bedrooms | $2,227 |
| 6 Bedrooms | $2,494 |
| 7 Bedrooms | $2,694 |
| 8 Bedrooms | $2,829 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,230 | $211,890 | 0.58% | F |
| 3BR | $1,610 | $269,279 | 0.6% | F |
| 4BR | $1,920 | $407,429 | 0.47% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 66040, located in La Cygne, Kansas, within Linn County, operate under specific financial guidelines that affect both landlords and tenants. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for FY 2024 is set at $1050. This SAFMR is specifically tailored for this ZIP code, ensuring it reflects the local rental market conditions accurately.
In contrast, the local market rent for a two-bedroom unit, according to the Census ACS, is $868. This difference highlights the potential financial dynamics involved when a landlord participates in the Section 8 program. Landlords often wonder about the actual payment they will receive from the voucher once the tenant's portion and utility allowances are factored into the equation.
A Section 8 voucher typically covers the difference between the tenant's contribution and the SAFMR. The tenant's portion is usually 30% of their income. If we assume an average household income where the tenant contributes around $315 (30% of $1050), then the government would cover the remaining balance up to the SAFMR. In addition, utility allowances are provided based on the location and size of the unit. For ZIP 66040, the utility allowance is generally around $100.
This means that if a landlord charges the SAFMR of $1050 for a two-bedroom apartment, the total reimbursement from the voucher program would be the tenant's contribution plus the utility allowance, equating to approximately $415. Thus, the landlord would receive $1050 - $415 = $635 directly from the voucher program, along with the tenant's direct payment of $315, making the total monthly rental income $950.
Given that the local market rent is $868, this scenario leaves a surplus for the landlord. The surplus is calculated as the difference between the SAFMR-based income and the local market rent, which in this case is $950 - $868 = $82. This surplus can be seen as a buffer that helps offset any administrative costs associated with participating in the Section 8 program.
To summarize, landlords in ZIP 66040 who participate in the Section 8 program for a two-bedroom apartment can expect a reimbursement that covers the tenant's contribution and utility allowances, resulting in a total monthly rental income of $950. This amount exceeds the local market rent by $82, providing a modest surplus for the landlord.
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.