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 | $1,160 |
| 1 Bedroom | $1,260 |
| 2 Bedrooms | $1,430 |
| 3 Bedrooms | $1,870 |
| 4 Bedrooms | $2,240 |
| 5 Bedrooms | $2,598 |
| 6 Bedrooms | $2,910 |
| 7 Bedrooms | $3,143 |
| 8 Bedrooms | $3,300 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,430 | $290,781 | 0.49% | F |
| 3BR | $1,870 | $355,384 | 0.53% | F |
| 4BR | $2,240 | $435,398 | 0.51% | F |
| 5BR | $2,598 | $468,461 | 0.55% | F |
U.S. Census Bureau data (2024)
Skeptical investors often question whether investing in Overland Park, KS, specifically ZIP code 66214, is worthwhile given the local rental market dynamics and federal guidelines. Let's address these concerns head-on using the most recent data available.
Objection 1: Will Fair Market Rent (FMR) of $1,140 for ZIP 66214 cover the mortgage on a $389,014 home?
The Fair Market Rent (FMR) set by HUD for ZIP 66214 in fiscal year 2024 is $1,140. This figure represents the maximum amount that a Section 8 voucher holder can pay towards their rent. To determine if this covers the mortgage on a $389,014 home, we need to consider the average interest rate and loan terms. Assuming an average 30-year fixed-rate mortgage at 5%, the monthly payment on a $389,014 home would be approximately $2,077. Therefore, the FMR of $1,140 alone does not cover the mortgage. However, landlords can charge additional rent beyond the voucher amount, up to the maximum allowed by the program. In practice, landlords might also receive a subsidy from the government to make up the difference between the FMR and the actual market rent.
Objection 2: Is there enough renter demand at 54.0%?
The percentage of renters in ZIP 66214 stands at 54.0%. This indicates a significant portion of the population is already renting, suggesting a reasonable demand for rental properties. However, the data does not specify how many of these renters qualify for Section 8 vouchers or how many are seeking subsidized housing. It is important to note that while 54.0% is a substantial share, it does not guarantee that all units will be occupied by those who can afford the rent through FMR or other means.
Objection 3: Will vouchers keep pace with $1,309 market rents?
The market rent for a two-bedroom apartment in ZIP 66214 is currently $1,309. Given that the FMR is set at $1,140, there is a discrepancy of $169 per month. The effectiveness of Section 8 vouchers in keeping pace with market rents depends on the availability of subsidies and the ability of tenants to contribute the difference. If the local housing authority provides a supplemental payment to cover the gap, then landlords can expect to receive the full market rent. However, the data does not provide details on the supplemental payments or the likelihood of receiving them.
In conclusion, while the data shows that the FMR may not fully cover the mortgage on a $389,014 home, and there is a notable gap between FMR and market rents, the high percentage of renters in the area suggests a strong potential market. Landlords should carefully review the specifics of the Section 8 program in Overland Park, including any supplemental payments, to ensure they can manage the financials effectively.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.