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 | $1,740 |
| 1 Bedroom | $1,890 |
| 2 Bedrooms | $2,140 |
| 3 Bedrooms | $2,800 |
| 4 Bedrooms | $3,350 |
| 5 Bedrooms | $3,886 |
| 6 Bedrooms | $4,352 |
| 7 Bedrooms | $4,700 |
| 8 Bedrooms | $4,935 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,140 | $413,085 | 0.52% | F |
| 3BR | $2,800 | $634,065 | 0.44% | F |
| 4BR | $3,350 | $763,479 | 0.44% | F |
| 5BR | $3,886 | $1,002,310 | 0.39% | F |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 66224, located in Leawood, KS, within the Kansas City, MO-KS HUD Metro FMR Area, reveals a favorable environment for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for this area is set at $1720 for the fiscal year 2024. In comparison, the market rent, as measured by ZORI (Zillow Observed Rent Index), stands at $1611. This indicates that voucher tenants can cashflow at the HUD FMR, providing landlords with a stable income source above the average market rate.
The median home value in ZIP 66224 is $801,033. Using this figure, we can derive the rent-to-price ratio. A simple calculation shows that the annual rent of $19,440 (based on the HUD FMR) represents approximately 2.4% of the median home value. This suggests that rental income in this area is relatively high compared to property values, making it an attractive option for investors seeking strong cash flow.
Regarding the days on market (DOM) and price-cut share, the data provided states these metrics as N/A and 0.2%, respectively. While these figures do not directly impact the cash flow potential, they do suggest a highly stable housing market where homes are not typically subject to significant price adjustments. This stability supports the long-term investment strategy, particularly for those focused on steady cash flow rather than rapid appreciation.
The strongest investor angle in this market is cash flow. With voucher tenants able to pay rents above the market average, and a high rent-to-price ratio, investors can expect solid returns on their investments without relying heavily on property appreciation or market volatility.
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.