Location: Topeka, KS | Metro: Topeka, KS MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $900 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,630 |
| 4 Bedrooms | $1,650 |
| 5 Bedrooms | $1,914 |
| 6 Bedrooms | $2,144 |
| 7 Bedrooms | $2,316 |
| 8 Bedrooms | $2,432 |
U.S. Census Bureau data (2024)
The skeptical investor might question whether the Fair Market Rent (FMR) of $880 for ZIP 66501 can sufficiently cover the mortgage on a typical home. To address this, let's consider the average home price in the area. According to Zillow, the median home value in ZIP 66501 is below the state average, which suggests that mortgages could be relatively affordable. However, without a specific dollar figure for the average home price, it's challenging to provide a definitive answer.
Another concern could be the level of rental demand at 17.6%. While this percentage may seem low, it's important to note that the rental market in ZIP 66501 is active, with an average rent of $1,150 per month. This indicates that there is a steady demand for rentals, despite the relatively low percentage of renters. The rental market is competitive, with a mix of houses and apartments available, ensuring that landlords have a reasonable chance of finding tenants.
A final objection might be whether vouchers will keep pace with the $1,614 market rents. Unfortunately, the data does not provide specific information on voucher utilization rates for ZIP 66501. Generally, voucher programs aim to ensure that rents do not exceed 30% of a household's income. In ZIP 66501, landlords should expect some variation in voucher coverage, but it's crucial to understand that voucher availability and payment standards can fluctuate based on local Public Housing Agency (PHA) policies and federal guidelines.
In summary, while the data does not fully resolve every concern, it suggests that the rental market in ZIP 66501 is stable and competitive. Landlords can reasonably expect to cover their mortgage costs with the FMR, and there is sufficient demand for rental properties. However, the specifics regarding voucher utilization rates remain unclear, and landlords must stay informed about local PHA policies.
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.