Location: Franklin County, KS | Metro: Franklin County, KS
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 | $880 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,160 | $169,063 | 0.69% | D |
| 3BR | $1,380 | $256,434 | 0.54% | F |
| 4BR | $1,520 | $315,962 | 0.48% | F |
| 5BR | $1,763 | $380,880 | 0.46% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 66067 (Ottawa, KS) might raise several concerns regarding the feasibility of investing in rental properties under Section 8. Let's address these objections head-on using the available data.
Objection 1: Will Fair Market Rent (FMR) of $1,000 (for the metro area in fiscal year 2026) cover the mortgage on a $235,526 home?
The FMR of $1,000 does not fully cover the typical mortgage payment on a $235,526 home. Based on average interest rates and a 30-year fixed mortgage, the monthly payment would be around $950, which is close but slightly below the FMR. However, it's important to note that FMRs can vary by bedroom size and unit type, so a larger or more expensive unit might have a higher FMR. Additionally, property taxes and insurance should also be considered when calculating the total monthly expenses.
Objection 2: Is there enough renter demand at 34.7%?
The renter demand at 34.7% indicates that roughly one-third of households in ZIP 66067 are renters. This percentage suggests a moderate level of demand. However, the success of a Section 8 investment hinges not just on the overall rental rate, but specifically on the number of families who qualify for and utilize Section 8 vouchers. The data provided does not specify the proportion of Section 8 tenants in the area, so we cannot conclusively determine if the demand is sufficient without further research into local housing assistance programs.
Objection 3: Will vouchers keep pace with $1,045 market rents?
The FMR of $1,000 falls short of the $1,045 market rent, indicating that landlords may face a shortfall if they rely solely on Section 8 vouchers. This discrepancy could mean that landlords need to find additional sources of income or manage their properties more efficiently to cover the difference. It's crucial to monitor local housing authority policies and any potential adjustments to voucher amounts in future years. Without specific data on the historical growth rate of voucher amounts, we cannot predict whether they will eventually match the market rent increases.
In conclusion, while the data provides insights into the challenges and considerations of investing in ZIP 66067 under Section 8, it also highlights areas where further investigation is necessary. The close alignment between FMR and mortgage payments, the moderate renter demand, and the gap between voucher amounts and market rents all present significant factors for potential investors to weigh carefully before making a decision.
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.