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 | $1,890 |
| 1 Bedroom | $2,050 |
| 2 Bedrooms | $2,320 |
| 3 Bedrooms | $3,030 |
| 4 Bedrooms | $3,630 |
| 5 Bedrooms | $4,211 |
| 6 Bedrooms | $4,716 |
| 7 Bedrooms | $5,093 |
| 8 Bedrooms | $5,348 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,320 | $523,339 | 0.44% | F |
| 3BR | $3,030 | $642,431 | 0.47% | F |
| 4BR | $3,630 | $835,352 | 0.43% | F |
| 5BR | $4,211 | $1,171,761 | 0.36% | F |
U.S. Census Bureau data (2024)
In Leawood, Kansas (ZIP 66206), the real estate market presents a robust environment for both landlords and small-portfolio investors. The median home value stands at $756,017, indicating a high-end residential area where property values are strong. With only 0.3% of listings having reduced their prices, it's evident that sellers maintain significant pricing power, suggesting a market where demand meets or exceeds supply. This dynamic is further supported by the median days on market (DOM) being listed as N/A, which typically points to homes selling quickly, often before reaching a typical DOM metric.
The pricing power in this market implies that landlords can expect steady rental income without significant pressure to reduce rents. The Fair Market Rent (FMR) for ZIP 66206 for fiscal year 2024 is set at $1,890, while the actual market rent (ZORI) is slightly higher at $1,900. This close alignment between FMR and ZORI suggests that the rental market is also stable, with little room for substantial increases but also minimal risk of decreases.
For long-hold investors, the setup in Leawood signals a market with limited potential for rapid appreciation. The strong median home value and the low percentage of price reductions suggest a mature market where growth is likely to be slow and steady rather than explosive. Investors should anticipate modest annual increases in property values, aligning with broader economic trends and local development activities.
Given the data, landlords and investors should focus on maintaining properties to ensure they meet the expectations of high-value homeowners and renters. The stability in both home values and rental rates provides a predictable cash flow scenario, making Leawood an attractive location for those seeking a reliable investment portfolio. However, the lack of significant appreciation potential means that investors must consider other factors such as rental yield and property management costs when evaluating returns.
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.