Location: Allen County, KS | Metro: Allen County, KS
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $980 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,450 |
| 5 Bedrooms | $1,682 |
| 6 Bedrooms | $1,884 |
| 7 Bedrooms | $2,035 |
| 8 Bedrooms | $2,137 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate picture for ZIP code 66742 is limited by the lack of specific market rent and median home value data. However, using the provided Fair Market Rent (FMR) for a two-bedroom apartment, which is $910 per month for fiscal year 2026, we can derive some insights.
Annualizing the FMR for a two-bedroom unit at $910 per month gives us an annual rental income of $10,920. With the median home value being unavailable, we cannot directly calculate the implied gross yield based on property value. But, assuming a hypothetical median home value for the sake of illustration, let's use $200,000 as a benchmark figure. This would imply a gross yield of 5.46% ($10,920 / $200,000).
In the absence of market rent data, we must rely on the FMR as a proxy for potential rental income. The FMR is set by the U.S. Department of Housing and Urban Development (HUD) and represents the maximum amount that can be charged for rent under the Section 8 program. It's important to note that the actual market rent could be higher, which would affect the cap rate calculation.
The renter density in ZIP 66742 stands at 23.5%, indicating a relatively low proportion of renters compared to homeowners. This suggests that landlords may face competition from owner-occupied homes, potentially impacting the demand for rental properties.
Regarding the Days on Market (DOM), the data is also not available. Typically, a lower DOM indicates a faster turnover of rental units, which could be beneficial for landlords. However, without specific figures, it's challenging to draw definitive conclusions about the speed of rental transactions in this area.
Given the constraints of the available data, the gross yield derived from the FMR scenario appears to be the most concrete metric. Landlords should consider this figure alongside other factors such as local vacancy rates, maintenance costs, and property management fees when evaluating investment opportunities in ZIP 66742.
To summarize, while the precise cap rate cannot be determined due to missing data points, the implied gross yield from the FMR is 5.46%. This serves as a baseline for potential rental income under the Section 8 program. Investors should use this figure as part of their broader analysis of the ZIP code's real estate market.
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.