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 | $1,110 |
| 1 Bedroom | $1,200 |
| 2 Bedrooms | $1,360 |
| 3 Bedrooms | $1,780 |
| 4 Bedrooms | $2,130 |
| 5 Bedrooms | $2,471 |
| 6 Bedrooms | $2,768 |
| 7 Bedrooms | $2,989 |
| 8 Bedrooms | $3,138 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,360 | $205,982 | 0.66% | D |
| 3BR | $1,780 | $261,603 | 0.68% | D |
| 4BR | $2,130 | $339,468 | 0.63% | D |
U.S. Census Bureau data (2024)
To decide whether to invest in ZIP 66111 (Kansas City, KS) for Section 8 properties, follow these steps:
Step 1: Debt Service Coverage Ratio (DSCR)
The Fair Market Rent (FMR) for ZIP 66111 in fiscal year 2024 is $1,190. To determine if this clears the debt service on a property valued at $254,306, calculate the DSCR. Assuming a mortgage rate of 4.5% and property taxes at 1%, the annual debt service would be approximately $17,600. With an FMR of $1,190, the annual rental income would be $14,280. This means the FMR does not cover the debt service, leading to a No for this step.
If you proceed despite this, understand that you will need additional sources of income or subsidies to make up the difference. However, based on the given data, investing in this area under these conditions is not financially viable without further support.
Step 2: Market Rent Comparison
The Zillow Observed Rental Index (ZORI) for ZIP 66111 is $1,444. This figure is higher than the FMR of $1,190. Therefore, the market rent is above the FMR, which indicates that landlords can potentially charge more than the FMR if they wish to attract non-Section 8 tenants. This suggests It Depends. If your goal is strictly to cater to Section 8 tenants, the FMR is below market rates, which might affect demand. If you're open to a mixed portfolio, the higher market rent could balance out the lower FMR.
Step 3: Tenant Demand Analysis
The percentage of renters in ZIP 66111 is 25.1%. The data does not provide days on market (DOM), but with a decent rental population, there's a foundation for demand. Given the market rent is above the FMR, landlords who choose to accept Section 8 tenants may still face competition from other rental options. However, the 25.1% of renters suggests a stable demand base. This leads to a Yes, but with caveats. There must be sufficient Section 8 vouchers available and a willingness among potential tenants to use them.
In conclusion, ZIP 66111 presents a scenario where the financials do not align well with Section 8 alone due to the FMR being insufficient to cover debt service. However, the higher market rent and stable rental population suggest that a mixed approach could be viable. Ensure you research the availability of Section 8 vouchers and tenant preferences in the area before making a final 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.