Location: Brown County, KS | Metro: Brown County, KS
| Unit Size | Monthly FMR |
|---|---|
| Studio | $920 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,250 |
| 3 Bedrooms | $1,550 |
| 4 Bedrooms | $1,730 |
| 5 Bedrooms | $2,007 |
| 6 Bedrooms | $2,248 |
| 7 Bedrooms | $2,428 |
| 8 Bedrooms | $2,549 |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 66425 might raise several concerns regarding the viability of investing in properties there. Let's address these points directly.
Objection 1: Will FMR $1,070 (metro FY 2026) cover the mortgage on a $173,263 home?
The Fair Market Rent (FMR) for ZIP 66425 is set at $1,070 for fiscal year 2026. This figure represents the maximum amount that a tenant could pay under the Section 8 program. To determine if this will cover the mortgage, we need to consider the interest rates and loan terms. Assuming an average interest rate and a standard 30-year fixed mortgage, the monthly payment on a $173,263 home would likely be lower than $1,070, thus making it feasible for a Section 8 tenant to cover the mortgage. However, the exact monthly payment would depend on the current interest rate environment.
Objection 2: Is there enough renter demand at 11.9%?
The rental demand in ZIP 66425 stands at 11.9%, which is relatively low compared to other areas. This percentage indicates the proportion of the population that are renters. Low renter demand suggests that finding tenants may be challenging. While the data does not provide the total number of renters or the vacancy rate, the low percentage implies a competitive market for rental properties. Landlords should be prepared to offer competitive amenities and pricing to attract tenants.
Objection 3: Will vouchers keep pace with $780 market rents?
The market rent in ZIP 66425 is $780, which is below the FMR of $1,070. However, the question of whether vouchers will keep pace with market rents is critical. The voucher payment standards are typically adjusted annually based on HUD's estimates of fair market rents. Given that the current market rent is already below the FMR, it is likely that voucher payments will cover the majority of the rent. However, the precise adjustment amounts are not provided in the data, so landlords must stay informed of local HUD adjustments to ensure they remain financially viable.
In summary, while the data provides some clarity on the potential financial viability of investing in ZIP 66425 through Section 8 housing, certain factors such as interest rates and voucher adjustments require ongoing attention. The low rental demand also poses a challenge that must be managed carefully.
Data Sources: FMR data from HUD (2027). 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.