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 | $840 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,460 |
| 5 Bedrooms | $1,694 |
| 6 Bedrooms | $1,897 |
| 7 Bedrooms | $2,049 |
| 8 Bedrooms | $2,151 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,110 | $226,521 | 0.49% | F |
| 3BR | $1,320 | $293,010 | 0.45% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 66076 in Pomona, Kansas, reveals a challenging investment scenario. Using the Fair Market Rent (FMR) for a two-bedroom unit set at $1,030 annually, the implied gross yield can be calculated by dividing the annual rent by the median home value. For ZIP 66076, this would result in an annualized rental income of $12,360 ($1,030 x 12 months). Given the median home value of $286,843, the gross yield based on FMR is approximately 4.31%. This calculation assumes the property could be rented out at the FMR rate.
However, using the actual market rent of $607 per month, the annualized rental income drops to $7,284. The gross yield based on market rent is significantly lower at about 2.54%. This figure reflects the current demand and supply dynamics in the area, suggesting that landlords might struggle to achieve rents close to the FMR.
The gross yield comparison between FMR and market rent highlights a stark difference, with FMR providing nearly double the gross yield compared to the market rent. Given the 14.6% renter density in Pomona, it is unlikely that many landlords will find tenants willing to pay the higher FMR rate. The low renter density implies limited competition among renters, making it difficult to command premium rents. Additionally, the N/A-day DOM (Days on Market) suggests that there is either insufficient data or little activity in the rental market, further supporting the notion that market rents are more realistic.
In conclusion, while the FMR offers a more attractive gross yield of 4.31%, the actual market conditions in ZIP 66076 point towards a gross yield closer to 2.54%. Landlords and small-portfolio investors should base their investment decisions on the lower market rent figure to avoid overestimating potential rental income.
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.