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 | $1,890 |
| 1 Bedroom | $2,050 |
| 2 Bedrooms | $2,320 |
| 3 Bedrooms | $3,030 |
| 4 Bedrooms | $3,630 |
| 5 Bedrooms | $4,211 |
| 6 Bedrooms | $4,716 |
| 7 Bedrooms | $5,093 |
| 8 Bedrooms | $5,348 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,320 | $345,632 | 0.67% | D |
| 3BR | $3,030 | $402,579 | 0.75% | D |
| 4BR | $3,630 | $620,328 | 0.59% | F |
| 5BR | $4,211 | $711,208 | 0.59% | F |
U.S. Census Bureau data (2024)
The ZIP code 66227 is located in Lenexa, Kansas, a suburb of Kansas City known for its affluent and family-oriented neighborhoods. With a total population of 9,595, it stands out as an area where homeownership is highly prevalent, with only 14.2% of residents renting their homes. This indicates a strong community of established homeowners who have invested in the local housing market, which has a median home value of $563,644. The median income in this ZIP code is also impressively high at $139,883, reflecting a robust economy and a concentration of well-paid professionals.
Moving into the specifics of rental economics, the Fair Market Rent (FMR) for ZIP 66227 for fiscal year 2024 is set at $1,820. This figure contrasts sharply with the market rent, measured by Zillow's Observed Rental Index (ZORI), which is $2,258. This discrepancy suggests that there is a significant gap between the government-set rent rates and the actual market rates, making it challenging for landlords to cover costs while still complying with Section 8 requirements.
Given these economic conditions, ZIP 66227 is not particularly suited for hands-off voucher operators due to the high cost of living and the disparity between FMR and market rents. Landlords would need to actively manage their properties to ensure profitability, possibly through strategic renovations or by carefully selecting tenants who can contribute additional rent beyond the voucher amount. For value-add buyers, this ZIP code presents opportunities for those willing to invest in property improvements to command higher rents that align with the local market. However, such investments require a keen understanding of the local rental market dynamics and a willingness to engage in detailed property management.
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.