Section 8 Fair Market Rent (FMR) for ZIP 66502 - 2027

Investment Score for ZIP 66502

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$840
1 Bedroom	$900
2 Bedrooms	$1,080
3 Bedrooms	$1,500
4 Bedrooms	$1,810
5 Bedrooms	$2,100
6 Bedrooms	$2,352
7 Bedrooms	$2,540
8 Bedrooms	$2,667

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$900	$171,714	0.52%	F
2BR	$1,080	$193,893	0.56%	F
3BR	$1,500	$252,534	0.59%	F
4BR	$1,810	$301,529	0.6%	D
5BR	$2,100	$376,885	0.56%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 66502 (Manhattan, KS) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 66502 in Manhattan, KS, provide a benchmark for rental costs that are relevant for Section 8 voucher holders. The FMRs for 2026 are as follows: - 0BR: $850 - 1BR: $860 - 2BR: $1050 - 3BR: $1460 - 4BR: $1760 These FMRs represent the maximum rent that a voucher holder can be expected to pay. However, it is important to understand how these figures compare to actual rents in the area. For instance, the Zillow median price for a 2BR property is $182,850, which translates into a monthly mortgage payment of approximately $762 assuming a 30-year fixed-rate mortgage at 5%. This is significantly lower than the FMR for a 2BR unit, indicating that the actual rental costs might be higher than what voucher holders can afford. The constraint for voucher holders is clear: they must find units that do not exceed the FMR. In a market where the median home value is much higher, this could be challenging. For example, a 2BR unit priced at $182,850 would have a price-to-FMR ratio of 14.5x, meaning that the typical rent for such a unit is likely to be well above the FMR. This suggests that many landlords might not accept Section 8 vouchers due to the high demand and limited supply of affordable units. #### Affordability & Renter Profile Manhattan, KS, has a population of 43,693, with 54.0% of residents being renters. This indicates a significant rental market presence, driven largely by the student population from Kansas State University, which is located in the city. The occupancy rate of 90.9% suggests that the market is relatively tight, with most available units being occupied. Given the median household income of $54,833, affordability is a key concern. A 2BR unit priced at $1050 per month represents 23.0% of the median income, which is manageable but still a substantial portion of a household’s budget. However, the Zillow median price for a 2BR property implies that the actual rental costs could be much higher, potentially making it difficult for low-income households to find affordable housing. The high proportion of renters and the tight occupancy rate indicate that there is strong demand for rental properties. However, the challenge lies in finding units that are both affordable and acceptable to voucher holders. Given the high price-to-FMR ratio, it is likely that many potential tenants will struggle to find suitable housing within their budget. #### Investor Angle From an investor perspective, the ZIP code 66502 presents a mixed picture. The FMRs provide a guideline for the maximum rent that can be charged to voucher holders. However, the actual rental market dynamics suggest that the average rent might be significantly higher than the FMRs. For a 2BR unit, the FMR is $1050, while the Zillow median price implies a much higher rent. If we assume a typical rental yield of 5%, the monthly rent for a $182,850 property would be around $762. This is below the FMR, suggesting that the market might be cash-flow positive for investors who can secure units at or near the Zillow median price. However, the high price-to-FMR ratio means that many units will not be affordable to voucher holders, limiting the pool of potential tenants. The investment grade for this ZIP code depends on the ability to find units that are both affordable and attractive to voucher holders. Given the high median home values and the tight rental market, it is likely that investors will face challenges in securing units that meet both criteria. #### Specific Actionable Insights 1. **Focus on Affordable Units**: Investors should focus on acquiring properties that are priced close to the FMRs. For a 2BR unit, this means targeting properties that are valued around $150,000, which would result in a monthly rent of approximately $625 (assuming a 5% rental yield). This would make the units more accessible to voucher holders and ensure a steady stream of income. 2. **Consider Student Housing**: Given the significant student population, investors might want to consider properties that cater specifically to students. These units often command higher rents due to the transient nature of the tenant base and the willingness of students to pay more for convenience and amenities. However, it is important to balance this with the need to remain within the FMR limits for voucher holders. 3. **Engage with Local Landlords**: Building relationships with local landlords who are willing to accept Section 8 vouchers can be beneficial. This might involve offering incentives or providing support services that make it easier for landlords to work with voucher holders. For example, a landlord might be more willing to accept a voucher if the investor provides a guarantee for timely payments. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 66502 is to **Hold**. While there is strong demand for rental properties, the high price-to-FMR ratio and the tight market conditions mean that finding affordable units that are also attractive to voucher holders will be challenging. Investors should carefully evaluate the potential for acquiring properties that align with FMR guidelines and consider diversifying their portfolio to include units that cater to different segments of the rental market, such as student housing. In summary, the dynamics of the rental market in Manhattan, KS, suggest that while there is ample opportunity for investment, the focus should be on securing units that are affordable and can attract voucher holders. The high median home values and the tight occupancy rate indicate that the market is competitive, and investors will need to be strategic in their approach to ensure long-term profitability.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.