Location: Crawford County, KS | Metro: Cherokee County, 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 | $730 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,580 |
| 5 Bedrooms | $1,833 |
| 6 Bedrooms | $2,053 |
| 7 Bedrooms | $2,217 |
| 8 Bedrooms | $2,328 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,330 | $157,598 | 0.84% | C |
U.S. Census Bureau data (2024)
ZIP 66724 in Cherokee, KS, serves as a cash-flow anchor within a Section 8 portfolio strategy. The area's median home value stands at $116,109, while the Fair Market Rent (FMR) for FY 2026 is set at $880, significantly higher than the market rent of $725. This creates a positive spread of $155 per month, which can be leveraged effectively through Section 8 contracts.
The high vacancy rate of 26.7% suggests a competitive market for rentals, making it easier to attract tenants. However, the higher renter turnover and delinquency risk indicate the need for thorough tenant screening and proactive management practices. Despite these challenges, the area offers strong rental backup, allowing landlords to generate $792 per month in rent if necessary.
The median income of $58,750 supports the demand for affordable housing, aligning well with Section 8 guidelines. With a 16.9% renter share, there is a sufficient pool of potential tenants who qualify for the program. The current 30-year fixed mortgage rate of 6.30% slightly exceeds the estimated cap rate of 5.5%, but the overall cash flow remains positive due to the higher FMR compared to market rents.
To maximize returns, landlords should focus on conservative capital expenditure budgets and efficient delinquency response strategies. While the area may not offer robust appreciation potential, the steady cash flow makes it a reliable component of a diversified investment portfolio.
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.