Location: Manhattan, KS | Metro: Geary County, KS HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,070 |
| 1 Bedroom | $1,160 |
| 2 Bedrooms | $1,370 |
| 3 Bedrooms | $1,890 |
| 4 Bedrooms | $2,290 |
| 5 Bedrooms | $2,656 |
| 6 Bedrooms | $2,975 |
| 7 Bedrooms | $3,213 |
| 8 Bedrooms | $3,374 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 66442 provides insight into the potential returns for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a 2-bedroom apartment in this area for FY 2024 is set at $1220 per month. To annualize this figure, we multiply it by 12, resulting in an annual FMR of $14,640. Given that the median home value is not available, we must rely on other data points to assess the investment landscape.
The market rent for a 2-bedroom property in ZIP 66442, based on Census ACS data, is $1,323 per month. Annualizing this market rent yields $15,876 per year. With a median home value being unavailable, we can only estimate the gross yield based on the monthly rental income and the typical price range for homes in the area. Assuming an average home price of around $200,000, which is a reasonable assumption given the lack of specific data, the implied gross yield for the FMR scenario would be approximately 7.32%. For the market rent scenario, the implied gross yield would be about 7.94%.
The high renter density of 99.2% suggests a strong demand for rental properties in ZIP 66442. However, the lack of specific data on the Days on Market (DOM) makes it difficult to determine how quickly properties can be leased. Despite this, the data indicates that the market rent scenario offers a slightly higher gross yield compared to the FMR scenario.
Given the high renter density, it is likely that landlords can achieve the higher market rent, thereby realizing the better gross yield. The difference between the two yields, while not substantial, could be significant when considering the overall profitability of a rental property. Therefore, it is advisable for investors to aim for the market rent rather than relying solely on the FMR for Section 8 properties in ZIP 66442.
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.