Location: Topeka, KS | Metro: Topeka, 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 | $930 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,250 |
| 3 Bedrooms | $1,670 |
| 4 Bedrooms | $1,750 |
| 5 Bedrooms | $2,030 |
| 6 Bedrooms | $2,274 |
| 7 Bedrooms | $2,456 |
| 8 Bedrooms | $2,579 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,670 | $283,869 | 0.59% | F |
U.S. Census Bureau data (2024)
The classification of ZIP code 66526 hinges on specific figures related to yield and stability. The Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $930. This figure, when compared against the median home value of $253,303, suggests a relatively low rental yield. The absence of market rent data makes it difficult to assess the direct rental potential, but the FMR provides a baseline expectation for rental income.
On the stability axis, several factors come into play. With only 9.5% of residents being renters, the rental market is quite thin, indicating a lower demand for rental properties. The median household income of $78,750 suggests that the population has reasonable purchasing power, which could support higher rents if the rental market were more robust. However, the lack of data on days on market (DOM) for rentals implies that there might be limited turnover or competition in the rental sector, which could affect the stability of rental income.
Given these figures, ZIP 66526 does not appear to be a high-yield market due to the low percentage of renters and the relatively low FMR compared to the median home value. It also does not present itself as a particularly stable rental market because of the thin rental base and the absence of key metrics such as DOM, which would indicate how quickly properties can be rented out.
This ZIP code seems to fall into a category that is neither a high-yield nor a steady-cashflow zone for landlords and small-portfolio investors. Instead, it represents a niche market where the potential for significant rental yields is constrained by the limited number of renters and the moderate income levels of the residents. Landlords should approach this market with caution, focusing on areas where rental demand is likely to be higher, or consider diversifying their investment strategies to include other forms of real estate income beyond traditional rentals.
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.