Section 8 Fair Market Rent (FMR) for ZIP 66503 - 2027

Location: Manhattan, KS | Metro: Manhattan, KS HUD Metro FMR Area

Investment Score for ZIP 66503

F
Monthly Rent (2BR)
$1,270
Median Price (2BR)
$241,214
1% Rule
0.53%
Annual Yield
6.32%

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$990
1 Bedroom$1,060
2 Bedrooms$1,270
3 Bedrooms$1,760
4 Bedrooms$2,120
5 Bedrooms$2,459
6 Bedrooms$2,754
7 Bedrooms$2,974
8 Bedrooms$3,123

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
2BR $1,270 $241,214 0.53% F
3BR $1,760 $310,130 0.57% F
4BR $2,120 $380,691 0.56% F
5BR $2,459 $506,577 0.49% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
17,273
Median Household Income
$97,846
Housing Units
7,779
Renter Percentage
40.5%
Occupancy Rate
90.9%
Renter Occupied
2,863

The ZIP code 66503, located in Manhattan, Kansas, stands out due to its unique demographic profile. With a total population of 17,273 residents, it has a significant rental market share at 40.5%. The median household income in this area is $97,846, reflecting a relatively affluent community. However, the median home value is notably lower at $352,109, which could be attributed to the high proportion of renters and the presence of a large university, Kansas State University, influencing the local housing dynamics.

Moving into the specifics of Section 8 voucher economics, the Fair Market Rent (FMR) for ZIP 66503 in fiscal year 2024 is set at $1,140. This figure represents the government's assessment of the average rent for a standard two-bedroom apartment. In contrast, the actual market rent, measured by ZORI (Zillow Observed Rent Index), is significantly higher at $1,463. This discrepancy means that landlords accepting Section 8 vouchers might see a gap between the subsidized rent and the market rate, potentially affecting their profitability if they rely heavily on these vouchers.

Evaluating the overall data signature of ZIP 66503, the metrics suggest a stable environment. The median income is robust, indicating a solid economic base. The rental market is substantial but balanced, and while the median home value is lower compared to some other areas, it aligns well with the significant number of renters. These factors point towards a steady housing market where both homeowners and renters can find suitable living conditions, making it a reliable investment location for those interested in either residential or rental properties.

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.