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 | $940 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,610 |
| 4 Bedrooms | $1,640 |
| 5 Bedrooms | $1,902 |
| 6 Bedrooms | $2,130 |
| 7 Bedrooms | $2,300 |
| 8 Bedrooms | $2,415 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $940 | $66,837 | 1.41% | A |
| 2BR | $1,210 | $117,884 | 1.03% | B |
| 3BR | $1,610 | $154,448 | 1.04% | B |
| 4BR | $1,640 | $205,847 | 0.8% | D |
| 5BR | $1,902 | $239,635 | 0.79% | D |
U.S. Census Bureau data (2024)
Topeka, KS, specifically ZIP code 66606, can serve as a cash-flow anchor within a Section 8 portfolio strategy. The Federal Market Rent (FMR) for ZIP 66606 in fiscal year 2024 is set at $980, which is significantly lower than the market rent of $1,058. This $78 spread between FMR and market rent provides a solid margin that ensures landlords receive a competitive rate for their properties while still maintaining eligibility under the Section 8 program.
The median home value in ZIP 66606 is $132,889, indicating a relatively affordable housing market. This affordability can translate into manageable mortgage payments for property owners, further enhancing the cash flow benefits of the area. Additionally, the low FMR compared to the market rent means that landlords can secure tenants through the Section 8 program without sacrificing rental income.
The 0.2% price-cut share and N/A-day Days on Market (DOM) suggest that the housing market in ZIP 66606 is stable and does not require frequent price adjustments to attract buyers. This stability supports the idea of using ZIP 66606 as a cash-flow anchor, as it reduces the risk of market fluctuations impacting rental income.
The renter share of 42.3% and median income of $57,169 indicate a moderate level of demand for rental properties. While these figures do not point towards high appreciation potential, they do support the notion that ZIP 66606 can be a reliable source of steady rental income. The median income figure also suggests that there is a sufficient number of potential Section 8 tenants who can afford the rent, given the government subsidy.
In conclusion, ZIP 66606 in Topeka, KS, is best suited as a cash-flow anchor in a Section 8 portfolio strategy due to the favorable spread between FMR and market rent. Landlords can expect consistent and competitive rental income, backed by the stability of the local housing market.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.