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 | $1,010 |
| 1 Bedroom | $1,150 |
| 2 Bedrooms | $1,330 |
| 3 Bedrooms | $1,840 |
| 4 Bedrooms | $2,220 |
| 5 Bedrooms | $2,575 |
| 6 Bedrooms | $2,884 |
| 7 Bedrooms | $3,115 |
| 8 Bedrooms | $3,271 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,150 | $158,473 | 0.73% | D |
| 2BR | $1,330 | $235,020 | 0.57% | F |
| 3BR | $1,840 | $338,990 | 0.54% | F |
| 4BR | $2,220 | $444,378 | 0.5% | F |
| 5BR | $2,575 | $578,614 | 0.45% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 66049, Lawrence, Kansas, for fiscal year 2024 is set at $1,130. This figure represents the payment standard for Section 8 housing assistance, meaning that if you participate in the program, the government will pay up to $1,130 per month for a unit. However, it's important to note that this is not your rent; it's the maximum amount the Housing Authority will pay on behalf of the tenant.
In comparison, the local Zillow Rent Index (ZORI) for the same area is $1,743. This indicates that the average market rent for properties in ZIP 66049 exceeds the Section 8 payment standard. Given this discrepancy, landlords must ensure that their property meets the quality standards required by the Section 8 program to receive the maximum payment. It's also crucial to consider the difference between the FMR and the actual market rates when deciding whether to participate in the program.
The 45.0% renter share in ZIP 66049 suggests a significant portion of the population relies on renting their homes, which can translate into a steady demand for rental properties. While this demand can be beneficial, it's important to understand that Section 8 tenants may have different needs and requirements compared to traditional renters.
When acquiring a property for a Section 8 rental, expect an average cost of around $391,695 based on recent real estate trends. This price point reflects the typical acquisition cost for a property suitable for the program in this area. Keep in mind that this is an investment, and while the FMR sets the payment standard, the long-term benefits can include a stable tenant base and reduced vacancy rates.
Before committing to a Section 8 rental, verify that your property complies with the Housing Quality Standards (HQS). These standards ensure that the property is safe, decent, and sanitary for occupancy. Meeting these criteria is essential to receiving the full payment standard and avoiding any penalties or disqualification from the program.
In summary, the FMR of $1,130 is the benchmark for government payments, whereas the local market rate is higher at $1,743. With 45.0% of residents being renters, there is a substantial demand for rental units. The acquisition cost of approximately $391,695 is a key factor in determining the financial feasibility of such an investment. Ensure your property meets HQS to avoid complications and to secure the best possible outcome for your Section 8 rental venture.
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.