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 | $1,380 |
| 1 Bedroom | $1,500 |
| 2 Bedrooms | $1,700 |
| 3 Bedrooms | $2,220 |
| 4 Bedrooms | $2,660 |
| 5 Bedrooms | $3,086 |
| 6 Bedrooms | $3,456 |
| 7 Bedrooms | $3,732 |
| 8 Bedrooms | $3,919 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,700 | $271,025 | 0.63% | D |
| 3BR | $2,220 | $360,458 | 0.62% | D |
| 4BR | $2,660 | $480,878 | 0.55% | F |
| 5BR | $3,086 | $576,022 | 0.54% | F |
U.S. Census Bureau data (2024)
The ZIP code 66216, located in Shawnee, Kansas, presents an interesting scenario when viewed from the perspective of renters. The median income here stands at $111,744, which is notably higher than the national average. However, the market rate for rent, known as the Zillow Observed Rent Index (ZORI), is set at $1,827. This figure represents the average monthly rent for a typical rental unit in the area.
In comparison to the Federal Market Rent (FMR) for ZIP 66216 in fiscal year 2024, which is $1,350, the market rate appears significantly higher. The FMR is the amount that the U.S. Department of Housing and Urban Development (HUD) pays for housing assistance through the Section 8 program. This means that a household receiving a Section 8 voucher could be limited to renting units priced at or below the FMR level.
Given that only 16.3% of the 24,881 population are renters, the competition among landlords for tenants is relatively low. This dynamic suggests that landlords might find it easier to attract cash-paying tenants who can afford the higher market rates. However, the affordability gap between the ZORI and the FMR highlights a significant challenge for voucher holders looking to secure housing within this ZIP code.
The takeaway for landlords is clear: there is a substantial difference between what the market demands and what the government subsidizes. Landlords must decide whether to cater to the higher-end market, where rents can be closer to the ZORI, or to participate in the Section 8 program, which would cap their rent at the FMR. Given the high median income and the relatively low percentage of renters, focusing on cash-paying tenants may yield better returns. However, landlords should also consider the potential benefits of accepting vouchers, such as guaranteed payments and access to a different segment of the rental market.
To make an informed decision, landlords should analyze the local demand for both types of tenancy and weigh the pros and cons of each strategy. They should also keep an eye on the demographic trends and any changes in the local economy that could affect the balance between market-rate and subsidized rents.
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.