Location: Washington County, KS | Metro: Manhattan, KS HUD Metro FMR Area
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 | $790 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,680 |
| 5 Bedrooms | $1,949 |
| 6 Bedrooms | $2,183 |
| 7 Bedrooms | $2,358 |
| 8 Bedrooms | $2,476 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,020 | $123,286 | 0.83% | C |
| 3BR | $1,340 | $170,711 | 0.78% | D |
U.S. Census Bureau data (2024)
The median household income in ZIP 66548, Waterville, KS, stands at $70,568. At first glance, the $600 market rate for rent seems manageable for residents. However, when considering the Federal Market Rent (FMR) standard set at $1020 for zip FY 2024, it becomes evident that the local rental market is significantly below the voucher payment threshold.
To understand the affordability gap, let’s break down the numbers. A household earning $70,568 annually has a monthly income of approximately $5,881. The $600 market rate represents about 10.2% of their monthly income, which is within the recommended 30% threshold for housing costs. This suggests that most residents can afford the current market rate without financial strain.
However, the FMR of $1020 is considerably higher than the market rate. This means that landlords accepting Housing Choice Vouchers (Section 8) would receive a higher monthly rent payment compared to the typical market rate. Given that only 20.2% of the 975 population are renters, the competition among landlords is relatively low, making it easier to attract tenants willing to pay the higher voucher rate.
The takeaway for landlords is clear: while the market rate of $600 is affordable for most residents, accepting vouchers can provide a more stable and higher income stream. Landlords should weigh the benefits of increased rental income against the administrative requirements of participating in the Section 8 program. For those who can navigate the process, the FMR of $1020 offers a compelling opportunity to enhance profitability in a competitive but sparse rental market.
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.