Location: Atchison County, 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 | $1,330 |
| 5 Bedrooms | $1,543 |
| 6 Bedrooms | $1,728 |
| 7 Bedrooms | $1,866 |
| 8 Bedrooms | $1,959 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $960 | $155,019 | 0.62% | D |
| 3BR | $1,280 | $247,886 | 0.52% | F |
| 4BR | $1,330 | $303,432 | 0.44% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 66436, which covers Holton, KS in Jackson County, revolve around the balance between the SAFMR (Small Area Fair Market Rent) and the local market rent. For fiscal year 2024, the SAFMR for a two-bedroom apartment in this specific ZIP code is set at $880. This figure represents the maximum amount that the Housing Choice Voucher program will reimburse landlords per month for renting out a two-bedroom unit. However, it's important to note that the local market rent, as reported by the Census American Community Survey, stands at $725 for the same type of apartment.
To understand what a landlord would actually receive from a voucher, we need to break down the components of the payment. The tenant is responsible for paying 30% of their adjusted income towards rent. If we assume an average adjusted income for a tenant in this area, the calculation would be straightforward. For instance, if a tenant has an adjusted income of $1,500, they would pay $450 (30% of $1,500) towards the rent. The remaining amount, up to the SAFMR limit, is covered by the voucher program. In this case, the voucher would cover the difference between the tenant’s contribution and the SAFMR, which is $430 ($880 - $450).
In addition to the base rent, the voucher also includes utility allowances. These allowances vary but typically cover a significant portion of the tenant's monthly utility costs. For ZIP 66436, the utility allowance might bring the total reimbursement close to the SAFMR of $880, depending on the specifics of the tenant's utility usage and the program's allowance rates.
Given these factors, landlords in ZIP 66436 can expect to receive a steady, government-backed payment of up to $880 per month for a two-bedroom apartment. However, the actual reimbursement received can be less if the tenant's portion plus utilities does not reach the SAFMR. Conversely, if the local market rent is below the SAFMR, landlords can charge the higher SAFMR rate, ensuring a surplus above the market price.
In ZIP 66436, where the local market rent is $725, landlords participating in the Section 8 program for a two-bedroom apartment would see a surplus of $155 per month ($880 - $725). This surplus provides a cushion against market fluctuations and ensures a reliable income stream, albeit with the trade-offs associated with the program's rules and regulations.
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.