Location: Woodson County, KS | Metro: Allen 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 | $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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $980 | $67,910 | 1.44% | A |
| 3BR | $1,320 | $137,161 | 0.96% | C |
| 4BR | $1,450 | $170,339 | 0.85% | C |
U.S. Census Bureau data (2024)
In ZIP code 66749, which covers Iola, KS, and Allen County, the economics of Section 8 housing can be straightforward if understood correctly. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2026 is set at $910. This figure is specifically tailored to reflect the rental market conditions in this particular area, ensuring that it is relevant and accurate for local landlords.
The local market rent, as reported by the Census ACS, is currently $776 for a similar two-bedroom unit. This indicates that the SAFMR is above the average market rate, which is beneficial for landlords participating in the Section 8 program. The SAFMR serves as the maximum amount that the Housing Choice Voucher program will pay for rent in this ZIP code. However, the actual reimbursement to landlords depends on the specific terms of the voucher and the tenant's contribution.
A Section 8 voucher typically requires the tenant to contribute 30% of their adjusted income towards the rent. For example, if a tenant has an adjusted income of $1,000 per month, they would contribute $300 towards the rent. The remaining amount, up to the SAFMR limit, is covered by the voucher. In addition to the base rent, utility allowances are also provided, but these vary based on the type of utilities required and the size of the household. Utility allowances are calculated separately and added to the base rent reimbursement.
To illustrate, let's assume a two-bedroom apartment in ZIP 66749 is rented at the SAFMR rate of $910. If the tenant contributes $300, the voucher program would cover the difference, up to the SAFMR limit. Therefore, the voucher would pay $610 towards the rent. If there are additional utility allowances, say $150, then the total reimbursement to the landlord would be $760 ($610 for rent plus $150 for utilities).
This scenario shows that even though the SAFMR is higher than the local market rent, the actual reimbursement might fall short of the SAFMR due to the tenant's contribution and the specific utility allowance. In this case, landlords renting at the SAFMR would see a reimbursement gap of $150 per month ($910 - $760), while those renting below the SAFMR could see a surplus. For instance, if the landlord sets the rent at $776, the reimbursement would still be $760, leaving a surplus of $16.
It's important to note that the reimbursement calculations can vary slightly depending on the specifics of each tenant's voucher and income level. Nonetheless, understanding the basic structure of how the SAFMR, tenant contributions, and utility allowances interact can help landlords make informed decisions about participating in the Section 8 program.
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.