Location: Kansas City, MO | Metro: Kansas City, MO-KS HUD Metro FMR Area
| 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 |
To determine if a landlord should invest in ZIP code 66276 (Unknown, MO) for Section 8 properties, follow these decision points:
1) Does the Fair Market Rent (FMR) of $1430 for the fiscal year 2024 cover the debt service on a potential property?
If the landlord can find a property where the monthly mortgage payment, including principal, interest, taxes, and insurance, is less than or equal to $1430, then the answer is yes. The FMR directly covers the debt service, making the investment financially viable. If the debt service exceeds $1430, then the answer is no, as the landlord would not be able to cover their costs solely through Section 8 payments.
2) Is the market rent above, at, or below the FMR of $1430?
If the market rent is above $1430, landlords must consider whether they can attract non-Section 8 tenants willing to pay the higher rate. If market rent is at or slightly below $1430, landlords can expect a smoother transition between Section 8 and non-Section 8 tenants. If the market rent is significantly below $1430, the answer is that it depends on the landlord's willingness to accept lower-than-FMR rents, which might indicate a challenging local rental market.
3) Do the percentage of renters and days on market (DOM) indicate sufficient demand?
The data for the percentage of renters and DOM in ZIP 66276 is currently unavailable. However, generally speaking, if over 50% of residents are renters and the DOM is under 60 days, there is strong demand, and the answer is yes. If the percentage of renters is below 50%, or the DOM is over 90 days, the answer is no, indicating weak demand and potentially difficult property management. In cases where the renter percentage is moderate and DOM is around 60-90 days, the answer is that it depends on the landlord's tolerance for slower turnover rates and how they plan to manage their portfolio.
Note: For accurate analysis, specific figures for market rent, percentage of renters, and DOM are required. Without these numbers, only general guidance can be provided based on typical thresholds and conditions.
Data Sources: FMR data from HUD (2027).
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.