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 | $1,020 |
| 1 Bedroom | $1,080 |
| 2 Bedrooms | $1,350 |
| 3 Bedrooms | $1,800 |
| 4 Bedrooms | $1,880 |
| 5 Bedrooms | $2,181 |
| 6 Bedrooms | $2,443 |
| 7 Bedrooms | $2,638 |
| 8 Bedrooms | $2,770 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,350 | $311,364 | 0.43% | F |
| 3BR | $1,800 | $362,085 | 0.5% | F |
| 4BR | $1,880 | $434,150 | 0.43% | F |
U.S. Census Bureau data (2024)
The ZIP code 66054, located in McLouth, Kansas, presents an interesting scenario for both renters and landlords. The median household income stands at $98,214, which is relatively high compared to the national average. However, when it comes to housing costs, the median rent of $994 per month is significantly lower than the typical monthly rental payment supported by the Federal Market Rent (FMR) standard, which is set at $1050 for fiscal year 2024.
To understand the financial landscape for renters, consider the following: a household earning the median income would allocate approximately 10.1% of their gross earnings towards rent at the market rate. This percentage is below the commonly accepted threshold of 30%, indicating that rent is generally affordable for most residents. Yet, the disparity between the market rate ($994) and the FMR standard ($1050) suggests a potential gap in the rental market where properties priced closer to the FMR might struggle to find tenants willing to pay that amount out-of-pocket.
In McLouth, only 9.4% of the population are renters, with a total population of 2,777. This low percentage of renters means that there is limited competition among landlords for cash-paying tenants. However, the presence of households eligible for housing vouchers could provide a significant pool of potential tenants, especially since the voucher payment standard is slightly higher than the market rate. Landlords who accept vouchers could attract tenants who otherwise might not be able to afford the local rental market, thereby increasing occupancy rates and potentially stabilizing cash flow.
The takeaway for landlords considering whether to accept vouchers versus focusing on cash-paying tenants is clear. Given the modest size of the rental market and the fact that the voucher payment standard exceeds the current market rate, accepting vouchers can be a strategic move to ensure steady tenancy. It also aligns well with the financial capabilities of the local population, making it a practical choice for maintaining a stable and profitable rental portfolio.
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.