Location: Topeka, KS | Metro: Topeka, KS MSA
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 | $720 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,300 |
| 5 Bedrooms | $1,508 |
| 6 Bedrooms | $1,689 |
| 7 Bedrooms | $1,824 |
| 8 Bedrooms | $1,915 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,280 | $209,435 | 0.61% | D |
U.S. Census Bureau data (2024)
The ZIP code 66423 has a population of 884, with 13.2% of residents being renters. This indicates that the area is primarily dominated by homeowners rather than renters. The median household income stands at $60,938, which provides a benchmark for assessing the affordability of rental properties.
Average market rent in this area is $644, which represents approximately 12.7% of the median household income. This percentage suggests that while rent is not excessively high relative to income, it still constitutes a significant portion of monthly earnings. For comparison, the Fair Market Rent (FMR) for the area, as set by HUD for FY 2024, is $880. This means that the actual market rent is about 73% of the FMR, indicating that rents are below the average considered fair across similar areas.
The discrepancy between the actual market rent and the FMR can be interpreted as an opportunity for landlords who are willing to accept Section 8 vouchers. Given that the market rent is significantly lower than the FMR, there is likely a substantial demand for rental units that accept vouchers. Landlords can expect tenants who qualify for Section 8 assistance, typically earning less than 50% of the area median income (AMI), to be able to afford higher rents closer to the FMR without undue financial strain.
In summary, ZIP 66423 is not a renter-heavy area but has a niche for properties that cater to Section 8 tenants. With market rents consuming a notable 12.7% of the median income, landlords who offer units at or near the FMR can attract tenants who have sufficient voucher coverage to meet these rates. These tenants will likely be families or individuals who are financially stable enough to maintain housing at the higher end of the affordable spectrum, yet still rely on government assistance to do so.
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.