Location: Neosho County, KS | Metro: Allen County, KS
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,270 |
| 4 Bedrooms | $1,360 |
| 5 Bedrooms | $1,578 |
| 6 Bedrooms | $1,767 |
| 7 Bedrooms | $1,908 |
| 8 Bedrooms | $2,003 |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP code 66772 might have several concerns regarding the feasibility of investing in rental properties under the Section 8 program. Here, we address these concerns with the available data.
Objection 1: Will Fair Market Rent (FMR) of $880 (for metro FY 2026) cover the mortgage on an average home in this area?
The FMR figure of $880 is the maximum amount that HUD will pay for a unit in ZIP 66772. However, without knowing the average home price and typical mortgage rates in this area, it's impossible to definitively state whether this amount will cover the mortgage. Investors should consult local real estate agents and financial advisors to determine if the FMR aligns with their investment criteria.
Objection 2: Is there enough renter demand at 23.7%?
The percentage of renters in ZIP 66772 stands at 23.7%, which is relatively low compared to some metropolitan areas where the percentage can exceed 50%. This suggests that there may be limited demand from traditional renters. However, the Section 8 program targets a specific segment of the rental market—those who qualify based on income and other factors. The actual demand for subsidized housing must be assessed through local HUD office reports and tenant waiting lists to understand the potential occupancy rate.
Objection 3: Will vouchers keep pace with market rents of $769?
The voucher payment standard is set at $880, which is above the current market rent of $769. This indicates that landlords participating in the Section 8 program in ZIP 66772 can expect to receive payments that are competitive with the market. However, the sustainability of this gap depends on how well HUD adjusts the voucher amounts to match inflation and changes in market conditions. Investors should monitor these adjustments and consider long-term trends when making investment decisions.
In conclusion, while the data provides insights into the potential profitability and demand for Section 8 rentals in ZIP 66772, it does not fully address all concerns. Investors must conduct further research into local real estate values and consult with local authorities to make informed decisions.
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.