Location: Neosho County, KS | Metro: Neosho County, KS
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 | $790 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,290 |
| 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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $960 | $84,763 | 1.13% | B |
| 3BR | $1,290 | $159,033 | 0.81% | C |
| 4BR | $1,300 | $211,862 | 0.61% | D |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 66733, located in Erie, Kansas, provides insight into the potential investment returns for landlords and small-portfolio investors. Using the annualized Fair Market Rent (FMR) and market rent figures, we can calculate the gross yield for properties in this area.
In ZIP 66733, the annualized FMR for a two-bedroom apartment is $880 per month, based on fiscal year 2026 data. This translates to an annual rental income of $10,560. Given the median home value of $129,997, the implied gross yield from the FMR scenario would be approximately 8.1%. The calculation is straightforward: divide the annual rental income by the median home value and multiply by 100 to get the percentage.
However, the Census ACS reports a market rent of $480 per month for a two-bedroom apartment. This yields an annual rental income of $5,760, leading to a gross yield of about 4.4%. To determine this, we simply apply the same formula used above, substituting the market rent figure for the FMR.
The difference between these two gross yields is significant. While the FMR scenario suggests a higher return at 8.1%, the actual market rent indicates a much lower yield at 4.4%. Given that only 20.4% of households in Erie are renters, the market rent figure likely offers a more realistic expectation for landlords and investors. The low renter density implies a competitive rental market where landlords must offer attractive rates to secure tenants, thus making the FMR scenario less probable.
The Days on Market (DOM) data being N/A suggests either a lack of comprehensive rental turnover information or a highly efficient local real estate market. In either case, it's prudent for investors to rely on the more conservative market rent figure when assessing potential investments in ZIP 66733.
To summarize, the gross yield from the FMR scenario is 8.1%, while the gross yield from the market rent scenario is 4.4%. Considering the low renter density, the latter represents a more accurate forecast for the area.
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.