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 | $1,680 |
| 1 Bedroom | $1,830 |
| 2 Bedrooms | $2,070 |
| 3 Bedrooms | $2,700 |
| 4 Bedrooms | $3,240 |
| 5 Bedrooms | $3,758 |
| 6 Bedrooms | $4,209 |
| 7 Bedrooms | $4,546 |
| 8 Bedrooms | $4,773 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,070 | $300,182 | 0.69% | D |
| 3BR | $2,700 | $410,324 | 0.66% | D |
| 4BR | $3,240 | $632,499 | 0.51% | F |
| 5BR | $3,758 | $1,126,793 | 0.33% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering Roeland Park, KS (ZIP 66205), might raise several valid concerns regarding the feasibility of investing in this area through the lens of Section 8 housing. Let's address these objections directly using the available data.
Objection 1: Will FMR $1530 (zip FY 2024) cover the mortgage on a $393,959 home?
The Fair Market Rent (FMR) for ZIP 66205 in fiscal year 2024 is set at $1530 per month. This figure represents the maximum amount that a landlord can charge for a Section 8 rental unit. For a median-priced home of $393,959, assuming a typical mortgage rate and a down payment, the monthly mortgage cost would likely exceed this FMR. Therefore, relying solely on Section 8 payments to cover the mortgage would be insufficient. Landlords would need to consider additional income sources or alternative financing options to ensure profitability.
Objection 2: Is there enough renter demand at 21.9%?
Rental demand in Roeland Park is relatively low, with only 21.9% of households being renters. This statistic suggests that the pool of potential tenants may be limited compared to areas with higher percentages of renters. However, it is important to note that Section 8 tenants often have a stable and consistent demand for housing. The low overall rental percentage does not necessarily indicate a lack of demand for subsidized housing. It simply means that the majority of residents own their homes rather than renting. To assess if there is sufficient demand, one must look at the specific number of Section 8 vouchers available and the waitlist length.
Objection 3: Will vouchers keep pace with $2,037 market rents?
The market rent in ZIP 66205 is currently $2,037 per month, which is significantly higher than the FMR of $1530 for Section 8 units. This discrepancy raises questions about whether the voucher program will be able to keep up with rising market rents. The Housing Choice Voucher Program adjusts its payment standards annually based on local market conditions. If the local market continues to rise, there is a risk that the FMR will not cover the full market rent, potentially leaving landlords with a financial shortfall. It is advisable to monitor future adjustments in FMR closely to ensure long-term viability.
In conclusion, while Roeland Park presents some challenges for Section 8 landlords, particularly in terms of covering mortgage costs and keeping pace with market rents, the data also highlights a stable tenant base. Investors should carefully evaluate their financial models and consider the broader economic context of the area before making investment decisions.
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.