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 | $1,410 |
| 1 Bedroom | $1,540 |
| 2 Bedrooms | $1,740 |
| 3 Bedrooms | $2,270 |
| 4 Bedrooms | $2,720 |
| 5 Bedrooms | $3,155 |
| 6 Bedrooms | $3,534 |
| 7 Bedrooms | $3,817 |
| 8 Bedrooms | $4,008 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,270 | $571,358 | 0.4% | F |
| 4BR | $2,720 | $689,195 | 0.39% | F |
| 5BR | $3,155 | $798,385 | 0.4% | F |
U.S. Census Bureau data (2024)
The potential pitfalls for investing in ZIP 66220 through the Section 8 program include significant tenant turnover and vacancy exposure. The market rent for the area stands at $1,976, while the Fair Market Rent (FMR) for FY 2024 is set at $1,530. This discrepancy suggests that landlords might experience higher turnover rates as tenants seek properties that align with their voucher amounts. Additionally, the lack of data on Days on Market (DOM) indicates uncertainty around how quickly units can be filled, leaving investors vulnerable to extended vacancy periods.
Deferred maintenance is another risk factor, especially considering the typical home value of $683,252 and the median income of $177,206. These figures imply that homeowners in the area may not have the financial capacity to maintain their properties adequately, which could translate into higher maintenance costs for landlords who take over these homes.
However, the risks are tempered by the fact that 4.6% of the population are renters. High renter density generally correlates with increased demand for housing vouchers, making it easier for landlords to find qualified tenants willing to use Section 8 vouchers. This demand can stabilize occupancy rates and reduce the likelihood of prolonged vacancies.
In summary, the investment in ZIP 66220 under the Section 8 program carries moderate risk for first-time landlords due to the combination of market conditions and economic factors in the area.
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.