Location: Lawrence, KS | Metro: Lawrence, KS MSA
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 | $890 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,630 |
| 4 Bedrooms | $1,970 |
| 5 Bedrooms | $2,285 |
| 6 Bedrooms | $2,559 |
| 7 Bedrooms | $2,764 |
| 8 Bedrooms | $2,902 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,180 | $213,994 | 0.55% | F |
| 3BR | $1,630 | $289,833 | 0.56% | F |
| 4BR | $1,970 | $344,819 | 0.57% | F |
| 5BR | $2,285 | $399,901 | 0.57% | F |
U.S. Census Bureau data (2024)
The Section 8 program in ZIP code 66046, which covers parts of Lawrence, Kansas, presents a unique opportunity for landlords and small-portfolio investors. The Fair Market Rent (FMR) for the area, as set by the Department of Housing and Urban Development for fiscal year 2024, is $960. This is significantly lower than the actual market rent, which stands at $1,716 according to the Zillow Rent Index (ZORI).
The gap between the FMR and the market rent is $756, representing a 78.7% difference. This substantial discrepancy means that landlords accepting Section 8 vouchers will be renting their properties at a rate that is well below the open-market price. Given that 55.2% of residents in Lawrence are renters, and the median home value is $287,115, the city has a mix of homeowners and renters, but the rental market is notably robust.
The median income in Lawrence is $65,478, indicating that many residents rely on assistance programs like Section 8 to afford housing. For landlords, this scenario translates into a potential yield play, where they might secure a steady stream of rental income through government subsidies. However, it also introduces challenges, such as the need to maintain properties to meet HUD standards and the possibility of dealing with administrative complexities associated with the program.
Accepting Section 8 vouchers means that landlords will have to manage their expectations regarding rental income. While the guaranteed payment from the government can provide stability, the $756 difference per month compared to market rents represents a significant financial consideration. Landlords must weigh the benefits of having reliable tenants against the lower rental income and the costs of maintaining properties to acceptable standards.
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.