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 | $950 |
| 1 Bedroom | $1,030 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,530 |
| 4 Bedrooms | $1,830 |
| 5 Bedrooms | $2,123 |
| 6 Bedrooms | $2,378 |
| 7 Bedrooms | $2,568 |
| 8 Bedrooms | $2,696 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,170 | $112,567 | 1.04% | B |
| 3BR | $1,530 | $144,931 | 1.06% | B |
| 4BR | $1,830 | $156,162 | 1.17% | B |
U.S. Census Bureau data (2024)
The rent math in ZIP 66101, part of the Kansas City, MO-KS HUD Metro FMR Area, does not align perfectly. The Fair Market Rent (FMR) set at $1050 for the fiscal year 2024 is lower than the actual market rent, which stands at $1,164 based on ZORI (Zillow Observed Rental Index). This discrepancy suggests that landlords may need to adjust their rental strategies to remain competitive.
Acquisition affordability in this area is favorable. The median home value is listed at $123,553, indicating that property purchases can be made at relatively low costs compared to other markets. However, the lack of data on days on market (DOM) and the low price-cut share of 0.3% suggest that while properties are affordable, they might not be turning over quickly, and sellers are reluctant to lower their asking prices.
Tenant demand is robust in ZIP 66101. With a population of 12,556, and a significant 60.8% of residents being renters, there is a substantial pool of potential tenants. This high renter share points to a strong likelihood of finding suitable occupants for rental properties.
In conclusion, ZIP 66101 presents a mixed picture for landlords and small-portfolio investors. While the rent math shows a slight disparity between FMR and market rates, the area's affordable median home values and high tenant demand make it a viable investment opportunity. Landlords should focus on competitive pricing and efficient property management to capitalize on the strong rental market. Despite the lack of recent sales activity data, the overall environment supports a positive outlook for rental investments.
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.