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 | $890 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,200 |
| 3 Bedrooms | $1,600 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,200 | $160,270 | 0.75% | D |
| 3BR | $1,600 | $244,680 | 0.65% | D |
U.S. Census Bureau data (2024)
ZIP code 66537 encompasses a quiet suburban area of Scranton, Kansas, characterized by a modest population of 1,475 residents. The neighborhood reflects a predominantly owner-occupied environment, with only 11.5% of the population renting their homes. This indicates a community where homeownership is valued, likely due to the median home value of $221,952, which is relatively stable and suggests a mix of middle-class families and individuals.
The median household income in this area stands at $70,000, positioning it as a middle-income neighborhood. This economic profile supports a steady demand for housing but also implies a limited rental market, given the low percentage of renters. However, for those interested in the rental sector, the Fair Market Rent (FMR) for ZIP 66537 in fiscal year 2024 is set at $1,010. This figure is notably higher than the average market rent of $855, as reported by the Census Bureau's American Community Survey (ACS).
The discrepancy between the FMR and the market rent highlights an opportunity for landlords and small-portfolio investors. For hands-off operators who rely on Section 8 vouchers, the higher FMR means that the government subsidy will cover a significant portion of the rent, ensuring a steady income stream without the need for extensive property management. Conversely, for hands-on investors looking to add value, there is potential to increase rents closer to the FMR level through improvements and better marketing, thereby increasing profitability.
In conclusion, ZIP 66537 offers a niche investment opportunity for both hands-off and hands-on real estate investors. With the government covering a substantial part of the rent through vouchers, it provides a secure investment option for passive landlords. Meanwhile, the gap between FMR and market rent presents a chance for active investors to enhance property values and capture higher rental yields.
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.