Location: Bourbon County, KS | Metro: Kansas City, MO-KS HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $820 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,680 |
| 5 Bedrooms | $1,949 |
| 6 Bedrooms | $2,183 |
| 7 Bedrooms | $2,358 |
| 8 Bedrooms | $2,476 |
U.S. Census Bureau data (2024)
ZIP code 66738, located within the Bourbon County, KS metro, presents an interesting case when compared to typical ZIP codes in the area. The Fair Market Rent (FMR) for 66738 in fiscal year 2024 is set at $1050. This figure is notably higher than the market rent of $650, indicating that there is a significant subsidy available for landlords participating in the Section 8 program within this ZIP code.
The renter share of 8.3% in 66738 is a key indicator of the potential demand for rental properties. However, the absence of home value data suggests that the market may be heavily skewed towards rentals rather than homeownership. This lack of home value data combined with the disparity between the FMR and market rent can imply that 66738 is a value pocket for Section 8 participants, where the government subsidy significantly exceeds the local market rates.
To further contextualize, if we consider the typical ZIP codes in Bourbon County, KS, it's reasonable to infer that most areas would have a closer alignment between their FMR and market rents, given the general economic conditions of the region. The fact that 66738 has a higher FMR relative to its market rent suggests that it is an area where the government is willing to pay more to ensure affordable housing options are available, likely due to lower average incomes or other socio-economic factors.
This scenario, where the FMR substantially outpaces the market rent, can create a favorable environment for landlords who are willing to participate in the Section 8 program. It ensures a steady income stream without the risk of market fluctuations affecting rent payments. For small-portfolio investors, this ZIP code could represent a strategic investment opportunity, particularly if they are looking to capitalize on the consistent rental income provided by the government subsidy.
In summary, ZIP code 66738 appears to be a value pocket within the Bourbon County, KS metro, characterized by a high subsidy gap and a moderate renter share. These factors make it an attractive location for landlords and investors interested in the stability and financial benefits offered by the Section 8 program.
Data Sources: FMR data from HUD (2027). 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.