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 | $1,420 |
| 1 Bedroom | $1,550 |
| 2 Bedrooms | $1,750 |
| 3 Bedrooms | $2,290 |
| 4 Bedrooms | $2,740 |
| 5 Bedrooms | $3,178 |
| 6 Bedrooms | $3,559 |
| 7 Bedrooms | $3,844 |
| 8 Bedrooms | $4,036 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,750 | $256,008 | 0.68% | D |
| 3BR | $2,290 | $359,197 | 0.64% | D |
| 4BR | $2,740 | $441,634 | 0.62% | D |
| 5BR | $3,178 | $506,715 | 0.63% | D |
U.S. Census Bureau data (2024)
The Section 8 market in ZIP code 66215, located in Lenexa, KS within the Kansas City, MO-KS HUD Metro FMR Area, presents a nuanced investment opportunity. The HUD Fair Market Rent (FMR) for the area is set at $1430 per month for the fiscal year 2024. In comparison, the Zillow Observed Rental Index (ZORI) for the same area stands at $1572, indicating that landlords who accept Section 8 vouchers can expect marginal cash flow at the FMR rate. This suggests that while voucher tenants will cover a significant portion of the rental costs, landlords might need to seek slightly above-average units to ensure positive cash flow.
To understand the broader market dynamics, it's essential to consider the median home value, which is $398,004. This figure translates into a rent-to-price ratio of approximately 0.036%, which is relatively low. This ratio implies that the local housing market is skewed towards homeownership rather than renting, although this doesn't necessarily impact the viability of Section 8 investments directly.
The real estate market in ZIP 66215 also shows strong liquidity, with a 14-day median Days on Market (DOM), indicating that properties typically sell quickly. Additionally, the price-cut share of 0.1% suggests that sellers rarely need to lower their asking prices to make a sale, further reinforcing the stability and desirability of the market. These factors suggest that the rental market is likely to remain steady, with minimal fluctuations expected in the near future.
In conclusion, the strongest investor angle in ZIP 66215 for Section 8 investments is stability. While cash flow may be marginal at the HUD FMR rate, the robust housing market and quick sales indicate a reliable tenant base and consistent demand for rental properties. This makes the area an attractive option for those seeking long-term, stable rental income without the risk of rapid price depreciation or high vacancy rates.
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.