Location: Brown County, KS | Metro: St. Joseph, MO-KS MSA
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 | $720 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,230 |
| 4 Bedrooms | $1,410 |
| 5 Bedrooms | $1,636 |
| 6 Bedrooms | $1,832 |
| 7 Bedrooms | $1,979 |
| 8 Bedrooms | $2,078 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,230 | $189,691 | 0.65% | D |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 66094 is centered around the discrepancy between the Fair Market Rent (FMR) set at $880 for fiscal year 2024 and the actual market rent reported at $688 according to the latest Census ACS data. This creates a gap of $192, or approximately 21.7%, between what the government deems as fair market rent and what the market currently dictates.
Given that the FMR exceeds the market rent, landlords and small-portfolio investors can leverage this situation to their advantage. Voucher tenants, who are guaranteed a certain level of funding based on the FMR, provide a stable and predictable income stream. This makes properties in ZIP 66094 a compelling yield play. The guaranteed rental income, coupled with the fact that only 30.6% of residents are renters, suggests that there is a limited pool of potential tenants competing for housing, which can further stabilize occupancy rates.
The median home value in ZIP 66094 is $125,428, and the median income is $72,000. These figures indicate that homeownership is relatively affordable, but they also highlight the importance of rental properties for those who cannot yet afford to buy. The higher FMR compared to the market rent means that landlords accepting Section 8 vouchers can receive a rental rate above the local average, thus potentially increasing their property's profitability.
However, it's important to note the implications of this gap. While it presents an opportunity for higher yields, landlords must also consider the administrative and regulatory requirements associated with Section 8 vouchers. Additionally, the lower market rent suggests that voucher tenants might be paying significantly more than other renters, which could affect their ability to cover other living expenses or maintain timely rent payments.
To summarize, the gap between the FMR and the market rent in ZIP 66094 provides a unique investment scenario where voucher tenants can ensure steady income for landlords, despite the higher administrative overhead. This makes the area a strategic choice for those looking to maximize yields while serving a critical need in the community.
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.