Location: Franklin County, 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 | $960 |
| 1 Bedroom | $1,030 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,550 |
| 4 Bedrooms | $1,810 |
| 5 Bedrooms | $2,100 |
| 6 Bedrooms | $2,352 |
| 7 Bedrooms | $2,540 |
| 8 Bedrooms | $2,667 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,550 | $332,210 | 0.47% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 66042 is centered around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 66042 in fiscal year 2024 is set at $1,160, while the Census American Community Survey (ACS) reports the market rent at $1,342. This creates a gap of $182 per month, representing a 15.7% difference between what voucher tenants can pay and the open-market rental rates.
Given that the FMR is less than the market rent, landlords and small-portfolio investors must consider the cost implications of accepting housing vouchers. Voucher tenants pay only a portion of their income towards rent, typically around 30%, which means landlords might be receiving payments below the prevailing market rates. For instance, if the median income in the area is $67,813, voucher tenants would contribute approximately $1,695 annually, significantly lower than the market rate of $1,342 per month.
In ZIP 66042, where 44.7% of residents are renters and the median home value stands at $286,154, the decision to participate in the Section 8 program involves a trade-off. While the program ensures steady and timely rent payments backed by the government, it also locks landlords into lower rental rates compared to the open market. This makes it essential for investors to evaluate the long-term benefits and potential drawbacks of relying on Section 8 tenants versus market-rate tenants.
To illustrate, if a property generates $1,342 per month in market rent, the total annual income would be $16,104. In contrast, a Section 8 tenant paying $1,160 per month would generate an annual income of $13,920. This represents a significant revenue difference of $2,184 per year, or about $182 per month. Therefore, landlords and investors must weigh the guaranteed income stability against the lower rental rates when considering participation in the Section 8 program.
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.