Location: Topeka, KS | Metro: Topeka, KS MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $920 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,240 |
| 3 Bedrooms | $1,650 |
| 4 Bedrooms | $1,680 |
| 5 Bedrooms | $1,949 |
| 6 Bedrooms | $2,183 |
| 7 Bedrooms | $2,358 |
| 8 Bedrooms | $2,476 |
U.S. Census Bureau data (2024)
Topeka, KS MSA metro's ZIP 66507 serves as a solid cash-flow anchor within a Section 8 portfolio strategy. The Federal Market Rent (FMR) for ZIP 66507 in fiscal year 2024 is set at $880, while the market rent stands at $1,019. This creates a favorable spread of $139 per month, ensuring that landlords can cover their costs and generate a consistent profit even when relying on Section 8 vouchers.
The median home value in ZIP 66507 is $293,657. Given that the FMR is lower than the market rent, landlords can secure properties at a reasonable price point without sacrificing rental income. This makes the area particularly attractive for those seeking steady, reliable returns.
A cash-flow anchor is essential for any real estate portfolio, providing a stable base of predictable income. ZIP 66507 excels in this role due to its well-defined rent parameters and the likelihood of maintaining occupancy rates given the local economic conditions. The median income in the area is $96,786, which supports the ability of tenants to meet their obligations and contributes to a lower risk of default.
While the area does not offer significant potential for price appreciation or rapid turnover, as evidenced by the N/A% price-cut share and N/A-day days on market (DOM), the focus should be on the long-term stability and cash flow it provides. This ZIP code is not an ideal diversifier either, with only 13.8% of residents being renters. However, the majority of the population's higher median income suggests a stable demand for rental properties, particularly those covered under Section 8 programs.
In summary, ZIP 66507 is best suited as a cash-flow anchor in a Section 8 portfolio strategy. Its defined FMR, market rent, and median home value create a balanced environment where landlords can expect reliable returns without the volatility associated with appreciation plays or areas with a higher renter share.
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.