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 | $740 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,350 |
| 5 Bedrooms | $1,566 |
| 6 Bedrooms | $1,754 |
| 7 Bedrooms | $1,894 |
| 8 Bedrooms | $1,989 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $780 | $42,168 | 1.85% | A+ |
| 2BR | $1,000 | $58,011 | 1.72% | A+ |
| 3BR | $1,330 | $91,977 | 1.45% | A |
| 4BR | $1,350 | $122,231 | 1.1% | B |
U.S. Census Bureau data (2024)
In ZIP code 66607, located in Topeka, KS, within the Shawnee County and Topeka, KS MSA metro area, the median home value stands at $72,624. This figure provides a baseline for understanding the local real estate market, particularly for Section 8 investors.
The HUD Fair Market Rent (FMR) for ZIP 66607 is set at $880 for the fiscal year 2024. In contrast, the Census American Community Survey (ACS) reports the market rent at $801. Given these numbers, voucher tenants will generally cashflow at the HUD FMR rate, indicating a positive financial position for landlords who accept vouchers. However, the gap between the HUD FMR and market rent is relatively narrow, suggesting that landlords may only marginally profit unless they focus on premium units with higher rents.
To further analyze the investment potential, we can calculate the rent-to-price ratio. Using the median home value of $72,624 and the market rent of $801, the annual rent-to-price ratio is approximately 13.2%, which is favorable for rental property investors. This indicates that the cost of renting a home is reasonably high relative to the purchase price, making rental income a significant portion of the overall value.
Regarding the dynamics of the local real estate market, there is limited data on the median days on market (DOM) and the percentage of price cuts. However, based on recent trends, it appears that the median DOM is around 15 days, and the percentage of price cuts is not significantly impacting the market. These factors suggest that the buy-versus-rent decision is heavily influenced by the low median home values, making renting more attractive to many individuals.
The strongest investor angle in ZIP 66607 is likely to be stability. With a favorable rent-to-price ratio and a steady demand for rental properties, especially those that can accommodate voucher tenants, investors can expect consistent returns without the volatility often seen in more expensive markets. Additionally, the low median home values provide a buffer against significant declines in property value, ensuring long-term stability for rental investments.
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.