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 | $970 |
| 1 Bedroom | $1,030 |
| 2 Bedrooms | $1,320 |
| 3 Bedrooms | $1,760 |
| 4 Bedrooms | $1,790 |
| 5 Bedrooms | $2,076 |
| 6 Bedrooms | $2,325 |
| 7 Bedrooms | $2,511 |
| 8 Bedrooms | $2,637 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,320 | $162,792 | 0.81% | C |
| 3BR | $1,760 | $226,836 | 0.78% | D |
| 4BR | $1,790 | $310,422 | 0.58% | F |
U.S. Census Bureau data (2024)
The market in ZIP 66609, located in Topeka, KS, presents a dynamic environment characterized by a strong preference for rental properties over homeownership. The Fair Market Rent (FMR) for the area stands at $920 for fiscal year 2024, while the market rent, as reported by the Census American Community Survey (ACS), is $1,130. This indicates that rental properties are valued slightly higher than what is considered fair market rent, suggesting a robust demand for rentals.
The median home value in ZIP 66609 is $237,978, which provides insight into the overall affordability of the housing market. However, without specific data on the percentage of price-cut share or days on market (DOM), it's challenging to definitively state whether supply outpaces demand or vice versa. Nonetheless, the fact that the median home value is lower than the average market rent implies that homeownership might be more affordable than renting, but the high preference for rentals suggests otherwise.
A key indicator of the market dynamics is the 31.5% renter share. This figure points to a significant portion of the population preferring to rent rather than own homes, which can exert long-term housing pressure on the rental market. High renter shares often signify areas where there is a consistent need for rental units, possibly due to transient populations, economic conditions, or other factors that make renting a more attractive option.
In summary, ZIP 66609 is a market with a notable inclination towards rentals, evidenced by the higher market rent compared to the FMR. The relatively low median home value suggests affordability for homeownership, yet the strong rental preference indicates that supply may not be meeting the high demand for rental properties. Landlords and small-portfolio investors should consider these dynamics when evaluating opportunities in this ZIP code.
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.