Location: Lyon County, KS | Metro: Lyon County, KS
| Unit Size | Monthly FMR |
|---|---|
| Studio | $790 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,730 |
| 5 Bedrooms | $2,007 |
| 6 Bedrooms | $2,248 |
| 7 Bedrooms | $2,428 |
| 8 Bedrooms | $2,549 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate picture for ZIP code 66830 reveals some interesting insights for landlords and small-portfolio investors. The Federal Market Rent (FMR) for a 2-bedroom unit in this area, based on fiscal year 2026 data, is set at $970 annually. In contrast, the market rent, as reported by the Census American Community Survey (ACS), stands at $850 annually.
To derive the gross yield for both scenarios, we can use the median home value of $266,452 as a reference point. For the Section 8 scenario, using the annualized FMR of $970, the implied gross yield is approximately 0.36%. This calculation is derived from the formula: Gross Yield = Annual Rent / Property Value. Thus, $970 / $266,452 ≈ 0.36%. On the other hand, if we consider the market rent of $850, the implied gross yield drops to about 0.32%.
The lower gross yield under the Section 8 scenario compared to the market rent scenario might initially seem less attractive. However, several factors must be considered when evaluating the realism of these scenarios. First, the renter density in ZIP 66830 is stated at 9.0%, indicating a relatively low proportion of renters in the area. This suggests that landlords might find it challenging to attract market-rate tenants, thereby making the Section 8 program a more stable source of income.
Second, the Days on Market (DOM) is listed as N/A, which could imply that rental properties are either quickly rented or that there's insufficient data to determine how long it takes for a property to be leased. Given the low renter density, the latter seems plausible. In such a scenario, the predictability of Section 8 rents becomes even more appealing, as the program guarantees a steady stream of income without the uncertainty associated with finding new tenants.
In conclusion, while the market rent scenario offers a slightly higher gross yield, the stability and guaranteed income of the Section 8 program make it a more realistic and potentially safer investment option for landlords and small-portfolio investors in ZIP 66830. The decision ultimately depends on the investor's risk tolerance and financial goals.
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.