Location: Marshall County, KS | Metro: Marshall County, KS
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,150 |
| 4 Bedrooms | $1,610 |
| 5 Bedrooms | $1,868 |
| 6 Bedrooms | $2,092 |
| 7 Bedrooms | $2,259 |
| 8 Bedrooms | $2,372 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $960 | $106,853 | 0.9% | C |
| 3BR | $1,150 | $185,236 | 0.62% | D |
| 4BR | $1,610 | $226,798 | 0.71% | D |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP 66508, Marysville, KS, reveals two distinct gross-yield scenarios based on the Fair Market Rent (FMR) and market rent figures.
First, using the annualized 2BR FMR of $880 for FY 2026, the potential annual rental income is $10,560. Given the median home value of $151,854, this scenario implies a gross-yield of approximately 7%. The calculation is straightforward: divide the annual rental income by the median home value ($10,560 / $151,854 = 0.07).
Second, considering the market rent of $694 as per the Census ACS, the annual rental income would be $8,328. This leads to a gross-yield of about 5.5% when compared to the median home value ($8,328 / $151,854 = 0.055).
The implied gross-yield of 7% under the FMR scenario is higher than the 5.5% yield under the market rent scenario. However, the more realistic gross-yield is likely closer to the market rent figure of 5.5%, given the low renter density of 23.3%. A lower renter density suggests that there might be fewer tenants available to fill properties at the higher FMR rate, making it less probable for landlords to consistently achieve the higher yield.
Moreover, the N/A-day DOM (Days on Market) indicates incomplete data regarding how quickly rental units are occupied. This could imply either very quick or very slow turnover rates, which adds uncertainty to achieving the FMR rate. In practice, landlords often face challenges in maintaining high occupancy rates, especially in areas with lower renter density, which makes the market rent scenario more plausible for most investors.
In conclusion, while the FMR-based gross-yield of 7% presents an attractive opportunity, the more realistic expectation for investors in ZIP 66508 is a gross-yield of around 5.5%, aligned with the market rent. This assessment provides a clearer picture of potential returns, factoring in local market conditions and tenant availability.
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.