Location: Kansas City, MO | Metro: Kansas City, MO-KS HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $890 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,420 |
| 4 Bedrooms | $1,710 |
| 5 Bedrooms | $1,984 |
| 6 Bedrooms | $2,222 |
| 7 Bedrooms | $2,400 |
| 8 Bedrooms | $2,520 |
U.S. Census Bureau data (2024)
A landlord considering ZIP 66767 for Section 8 investments must evaluate several factors. The first step is to determine if the Fair Market Rent (FMR) of $1050 for the fiscal year 2024 can cover the debt service on a property valued at $172,965. This requires calculating the expected monthly mortgage payment and comparing it to the FMR.
If the FMR of $1050 exceeds the monthly debt service, then the next question is whether the market rent of $903 (as per the Census American Community Survey) is above, at, or below the FMR. If market rent is below the FMR, landlords will benefit from Section 8 because they can charge the higher FMR rate. If market rent is equal to or above the FMR, landlords might prefer renting outside the Section 8 program to maximize their rental income.
The third consideration is the demand for rental properties. In ZIP 66767, 22.2% of residents are renters, which indicates a moderate level of rental demand. However, the lack of data on days on the market (DOM) means that the speed at which properties are rented cannot be accurately assessed. Without this information, it's difficult to gauge the competition and the ease of finding tenants.
Yes: If the FMR of $1050 comfortably covers the debt service and market rent is below the FMR, and there is a steady flow of potential tenants, then investing in ZIP 66767 for Section 8 is advisable.
No: If the FMR does not cover the debt service or market rent is equal to or above the FMR, then the landlord should reconsider investing in this ZIP code for Section 8 properties.
It Depends: With 22.2% of residents being renters and unknown DOM figures, the landlord needs to further investigate the local real estate market dynamics. High competition or slow tenant acquisition could make the investment less attractive despite favorable FMR and market rent conditions.
To summarize, the decision to invest in ZIP 66767 for Section 8 properties hinges on these key points: the ability of FMR to cover debt service, the relationship between market rent and FMR, and the strength of rental demand. Careful analysis of each factor will guide the landlord towards a well-informed decision.
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.