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 | $720 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,300 |
| 5 Bedrooms | $1,508 |
| 6 Bedrooms | $1,689 |
| 7 Bedrooms | $1,824 |
| 8 Bedrooms | $1,915 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $960 | $53,081 | 1.81% | A+ |
| 3BR | $1,280 | $70,475 | 1.82% | A+ |
U.S. Census Bureau data (2024)
Topeka, KS, specifically ZIP 66612, presents a unique opportunity for inclusion in a Section 8 portfolio strategy due to its characteristics that align well with the goal of being a cash-flow anchor.
The Fair Market Rent (FMR) for ZIP 66612 in fiscal year 2024 is set at $880, while the current market rent stands at $716. This creates a positive spread of $164 per unit, which ensures that properties in this ZIP code can be rented out at a higher rate through Section 8 vouchers compared to the standard market rent. This discrepancy directly supports the objective of generating stable cash flow, as landlords can rely on the guaranteed rental income provided by the government program.
Furthermore, the median home value in ZIP 66612 is $72,269, indicating that the area has relatively affordable housing options. This affordability factor can be advantageous for landlords who are looking to acquire properties at lower initial costs, thereby maximizing their potential returns on investment. The low median home value also suggests that there is a significant demand for affordable housing, which Section 8 addresses effectively, ensuring consistent occupancy rates and steady income streams.
While ZIP 66612 does offer an 81.5% renter share and a median income of $26,067, these factors do not significantly contribute to its potential as an appreciation play. The lack of data regarding price-cut shares and days on the market (DOM) indicates that property values are unlikely to appreciate rapidly, making it less suitable for speculative investments focused on capital gains.
Therefore, based on the available data, ZIP 66612 should be considered primarily as a cash-flow anchor within a Section 8 portfolio strategy. The combination of a favorable FMR-market rent spread and affordable property acquisition costs provides a solid foundation for generating reliable and predictable income, which is crucial for landlords and small-portfolio investors seeking financial stability.
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.