Location: Franklin County, KS | Metro: Lawrence, KS MSA
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 | $810 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,790 |
| 5 Bedrooms | $2,076 |
| 6 Bedrooms | $2,325 |
| 7 Bedrooms | $2,511 |
| 8 Bedrooms | $2,637 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,070 | $234,434 | 0.46% | F |
| 3BR | $1,480 | $298,814 | 0.5% | F |
| 4BR | $1,790 | $329,821 | 0.54% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking into the Overbrook, KS area (ZIP 66524) might have several concerns regarding the viability of investing in rental properties under Section 8. Here are three common objections addressed with the available data.
Objection 1: Will Fair Market Rent (FMR) of $930 for the fiscal year 2024 cover the mortgage on a $272,457 home?
The FMR of $930 is set by the U.S. Department of Housing and Urban Development (HUD) to ensure that housing assistance recipients can afford decent-quality housing. To determine if this amount will cover the mortgage, we must consider the typical interest rates and loan terms. Assuming a 30-year fixed-rate mortgage at an average rate of 5%, the monthly payment on a $272,457 home would be approximately $1,470. This means that the $930 FMR would not fully cover the mortgage payment, leaving a shortfall of $540 per month. Investors would need to factor in this gap when considering their investment.
Objection 2: Is there enough renter demand at 12.4%?
The percentage of renter-occupied households in Overbrook, KS stands at 12.4%. While this figure is relatively low compared to urban areas, it still represents a segment of the population that could potentially benefit from Section 8 housing. However, the data does not provide insights into the total number of renters or the size of the Section 8 waiting list. Without these details, it's challenging to definitively assess whether the demand is sufficient to sustain a Section 8 property. It's advisable to research further into local rental trends and the number of Section 8 participants in the area.
Objection 3: Will vouchers keep pace with market rents of $842?
The average market rent of $842 in Overbrook, KS is lower than the FMR of $930. This suggests that landlords participating in the Section 8 program could receive a higher rent than the market average, which is beneficial. However, the question of whether voucher payments will keep up with inflationary pressures on rents remains unanswered by the provided data. HUD adjusts the FMR annually based on changes in the housing market, but the exact timing and extent of these adjustments are not specified here. For a comprehensive analysis, one should consult the latest HUD guidelines and historical data on FMR adjustments.
In summary, while the FMR of $930 provides a guaranteed income level for Section 8 landlords in Overbrook, KS, it falls short of covering the mortgage on a $272,457 home. The 12.4% renter demand indicates a niche market, but additional research is needed to confirm its sustainability. Lastly, the current FMR exceeds market rents, but long-term financial planning requires an understanding of how voucher payments will evolve with market conditions.
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.