Location: Topeka, 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 | $860 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,580 |
| 4 Bedrooms | $1,900 |
| 5 Bedrooms | $2,204 |
| 6 Bedrooms | $2,468 |
| 7 Bedrooms | $2,665 |
| 8 Bedrooms | $2,798 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,140 | $273,471 | 0.42% | F |
| 3BR | $1,580 | $373,461 | 0.42% | F |
| 4BR | $1,900 | $525,452 | 0.36% | F |
U.S. Census Bureau data (2024)
The Section 8 market in ZIP 66050, encompassing Lecompton, KS, and part of the Topeka, KS MSA metro, is characterized by a Federal Housing Administration (HUD) Fair Market Rent (FMR) of $1010 for FY 2024. This figure contrasts with the Census ACS-reported market rent of $913, indicating that voucher tenants can achieve positive cashflow at the FMR level. However, the actual cashflow margin is slim, suggesting that landlords will benefit most from premium units that command higher rents.
To further analyze the investment potential, consider the median home value of $377,364. The rent-to-price ratio is approximately 0.27%, which is calculated by dividing the annual rent ($10,956, based on $913 monthly rent) by the median home value. This low ratio indicates that rental income alone might not be sufficient to justify the purchase of a property solely for rental purposes, especially when compared to the potential returns from owning a home outright.
The dynamics of days on market (DOM) and price-cut shares do not provide specific data for ZIP 66050, but given the stable nature of the housing market and the slight increase in median home values, it suggests that the area is experiencing steady growth. This stability can be beneficial for long-term investments, particularly for those looking to capitalize on appreciation rather than immediate cashflow.
In summary, while cashflow is possible with voucher tenants at the FMR, the strongest investor angle in ZIP 66050 is likely appreciation, given the stable housing market and modest increases in home values over time.
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.