Location: Franklin County, 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 | $1,000 |
| 1 Bedroom | $1,090 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,610 |
| 4 Bedrooms | $1,920 |
| 5 Bedrooms | $2,227 |
| 6 Bedrooms | $2,494 |
| 7 Bedrooms | $2,694 |
| 8 Bedrooms | $2,829 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,230 | $147,378 | 0.83% | C |
| 3BR | $1,610 | $230,786 | 0.7% | D |
| 4BR | $1,920 | $271,108 | 0.71% | D |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP 66064 (Osawatomie, KS) for Section 8 investment, follow these steps:
Step 1: Does the Fair Market Rent (FMR) of $1050 cover the debt service on a $198,784 property?
Yes. The FMR of $1050 can potentially cover the debt service on a $198,784 property. Assuming a typical mortgage rate of around 5%, the monthly payment on such a property would be approximately $1,100. While this exceeds the FMR slightly, it's important to note that Section 8 landlords often receive additional subsidies, which can help offset the difference. This makes the FMR competitive for covering debt service.
No. If the FMR of $1050 does not cover the debt service on a $198,784 property, then purchasing in this area for Section 8 investment is not advisable. Given the average monthly mortgage payment of about $1,100, the gap between the FMR and debt service would be too significant without additional subsidies to make up the difference.
It Depends. If the property value is lower or the mortgage rate is significantly less than 5%, the FMR might fully cover the debt service. Conversely, higher property values or rates will make it difficult for the FMR to cover the debt service. In this case, consider the specifics of your financial situation and the potential for subsidies.
Step 2: Is the market rent of $757 above, at, or below the FMR?
Above. If the market rent is higher than the FMR, you might face challenges attracting Section 8 tenants. However, the local housing authority may adjust the payment standards to match market conditions, so this isn't necessarily a deal-breaker.
At or Below. If the market rent is equal to or below the FMR, you're likely to find it easier to attract Section 8 tenants. The FMR provides a benchmark that ensures landlords receive a fair rental amount, making it more attractive for participation in the program.
Step 3: Are 18.4% of residents renters and do the Days on Market (DOM) indicate sufficient demand?
Yes. With 18.4% of residents being renters, there is a moderate level of demand. However, the lack of data on DOM suggests that while there is some demand, it may not be consistently high. You should research further into the local rental market trends to confirm sustained interest.
No. If the percentage of renters is low or the DOM indicates a slow market, there may not be enough demand to support a Section 8 investment. A low number of renters means fewer potential tenants, and a long DOM implies difficulty in leasing properties quickly.
It Depends. The 18.4% figure alone doesn't provide a complete picture. Investigate the DOM data and other indicators of rental demand. If the market shows signs of growth or stability, the demand could be sufficient despite the limited data available.
In conclusion, the viability of buying in ZIP 66064 for Section 8 investment hinges on the alignment between FMR and debt service, the relationship between FMR and market rent, and the overall demand for rentals. Carefully evaluate these factors to make an informed decision.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.