Section 8 Fair Market Rent (FMR) for ZIP 66539 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Housing Authorities Serving ZIP 66539

• Topeka Housing Authority (Topeka, KS) - 1,385 Section 8 vouchers
• Holton Housing Authority (Holton, KS)

Silver Lake, Kansas, located in ZIP code 66539, presents a mix of opportunities and challenges for landlords and small-portfolio investors. Let's address some common concerns.

• Will FMR $880 (zip FY 2024) cover the mortgage on a $272,940 home? The Fair Market Rent (FMR) for ZIP 66539 is projected to be $880 per month in fiscal year 2024. To determine if this will sufficiently cover the mortgage, we must consider typical interest rates and loan terms. Assuming a 30-year fixed-rate mortgage at an average rate of 5%, the monthly payment on a $272,940 home would be approximately $1,450. Clearly, $880 falls short of covering the mortgage alone, suggesting that additional income sources or a lower interest rate scenario might be necessary to make the investment viable.
• Is there enough renter demand at 15.5%? The percentage of renter-occupied housing units in Silver Lake is 15.5%. This figure indicates a relatively low demand compared to areas with higher percentages of renters. However, it also suggests that rental properties can potentially command higher premiums due to scarcity. For investors, diversification into other property types such as single-family homes or apartments could mitigate risk associated with limited renter demand. Additionally, focusing on quality and affordability can attract a steady stream of tenants.
• Will vouchers keep pace with $860 market rents? Vouchers are a critical component of the rental market, especially in areas where low-income households rely on them. The current market rent in Silver Lake is $860. Whether vouchers will keep pace depends on federal funding levels and local administration. According to recent data, the average voucher amount in Kansas is around $700, which is below the market rent. This discrepancy means that landlords might need to accept a lower effective rent or require tenants to pay the difference, impacting profitability. However, it's worth noting that voucher holders often have stable income and credit histories, reducing turnover and maintenance costs.

The data provides a snapshot of the financial landscape in Silver Lake but does not offer a complete picture of future trends. Investors should consider consulting local real estate professionals and reviewing additional economic indicators before making decisions.

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.