Location: Kansas City, MO | 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 | $1,460 |
| 1 Bedroom | $1,590 |
| 2 Bedrooms | $1,800 |
| 3 Bedrooms | $2,350 |
| 4 Bedrooms | $2,820 |
| 5 Bedrooms | $3,271 |
| 6 Bedrooms | $3,664 |
| 7 Bedrooms | $3,957 |
| 8 Bedrooms | $4,155 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,800 | $329,793 | 0.55% | F |
| 3BR | $2,350 | $370,132 | 0.63% | D |
| 4BR | $2,820 | $471,576 | 0.6% | F |
| 5BR | $3,271 | $632,891 | 0.52% | F |
U.S. Census Bureau data (2024)
Olathe’s 66062 zip code represents a stable, family-centric environment within Johnson County, characterized by well-maintained subdivisions and a strong suburban feel. The local economy is robust, underpinned by the presence of major employers such as Garmin, which maintains its corporate headquarters here and supports a high concentration of professional residents. Neighborhoods in this area typically feature modern housing stock, access to extensive park systems, and a reputation for safety, making it one of the more desirable locations in the Kansas City metropolitan area.
From an investment perspective, the data reveals a challenging gap between HUD subsidy levels and market realities. The FY2024 HUD SAFMR for a 2-bedroom unit is $1,450, while the full FY2026 FMR ladder rises to $1,560. However, current market rent (Zillow ZORI) sits significantly higher at $1,766, creating a potential monthly shortfall of $306 for 2-bedroom units relying on the 2026 FMR. Median home values are elevated at $438,495, with a specific median 2BR sale price of $330,804, and inventory moves relatively fast with a median of 28 days on market.
Despite the high median household income of $117,585 and a relatively low renter share of 26.7%, demand for quality rental housing persists. The area is served by the highly-rated Olathe School District, a significant draw for families, and transit options are primarily car-dependent, consistent with suburban sprawl. Given the income demographics, traditional market renters may easily outbid voucher holders, yet the scarcity of affordable units ensures that well-priced Section 8 properties can still attract steady interest from cost-conscious families seeking school stability.
The Section 8 verdict for 66062 leans toward appreciation and stability rather than immediate cash flow. The $306 gap between market rent and the future FY2026 FMR suggests that investors accepting vouchers must be comfortable with lower yield compared to market rates. However, the high median income and low days on market indicate strong asset appreciation potential. Investors should view this zip code as a long-term hold strategy, leveraging the area’s economic resilience and institutional employers like Garmin to maintain property values, rather than relying on maximum government rent payments.
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.