Location: Topeka, 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 | $920 |
| 1 Bedroom | $1,050 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,680 |
| 4 Bedrooms | $2,020 |
| 5 Bedrooms | $2,343 |
| 6 Bedrooms | $2,624 |
| 7 Bedrooms | $2,834 |
| 8 Bedrooms | $2,976 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,050 | $189,028 | 0.56% | F |
| 2BR | $1,210 | $224,396 | 0.54% | F |
| 3BR | $1,680 | $282,031 | 0.6% | F |
| 4BR | $2,020 | $391,133 | 0.52% | F |
| 5BR | $2,343 | $527,163 | 0.44% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 66044, located in Lawrence, Kansas within Douglas County, operate based on specific financial mechanisms that directly impact landlords and small-portfolio investors. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2024 is set at $1050. This SAFMR figure is crucial because it is the maximum amount that the housing authority will pay towards the rent subsidy for a Section 8 tenant in this particular area.
The local market rent, as measured by ZORI (Zillow Observed Rent Index), is slightly higher at $1,145. This indicates that landlords can charge up to this amount, but the housing authority will only subsidize up to the SAFMR rate of $1050. The tenant is responsible for paying a portion of the rent, which is typically around 30% of their adjusted income. If the tenant's portion plus the utility allowance does not cover the total rent, the landlord receives the difference from the housing authority.
To illustrate, if a tenant's portion is calculated to be $300 and the utility allowance is $150, the total reimbursement from the housing authority would be $1050. Therefore, the landlord receives the full $1050 as the SAFMR rate, ensuring a consistent income stream regardless of the actual market rent. The utility allowance helps cover electricity, gas, water, and sewer costs, making the total rental package more attractive to tenants.
In ZIP 66044, landlords should expect a reimbursement gap if they charge above the SAFMR rate. For example, if a landlord charges the local market rent of $1,145, the housing authority will only cover $1050. In this case, the landlord would need to rely on the tenant's contribution to make up the difference, which in this scenario would be $95 ($1,145 - $1050).
However, if landlords charge exactly the SAFMR rate or less, there would be no reimbursement gap, and they would receive the full subsidized amount without relying on the tenant's contribution to cover additional costs. Given the SAFMR rate of $1050 and the local market rent of $1,145, landlords charging the market rate would face a reimbursement gap of $95 per month for a two-bedroom unit.
This analysis provides clarity on the financial dynamics involved when participating in the Section 8 program in ZIP 66044. Landlords must carefully consider their pricing strategy to ensure profitability while providing affordable housing options to eligible tenants.
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.