Location: Lyon County, KS | Metro: Lyon 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 | $830 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,840 |
| 5 Bedrooms | $2,134 |
| 6 Bedrooms | $2,390 |
| 7 Bedrooms | $2,581 |
| 8 Bedrooms | $2,710 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,140 | $160,599 | 0.71% | D |
| 3BR | $1,480 | $187,181 | 0.79% | D |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,030 for the Americus, KS metro area in fiscal year 2026 will cover the mortgage on a home priced at $202,250. According to Zillow's data, the average home value in ZIP code 66835 has increased by 2.6% over the past year, reaching $202,250. To determine if the FMR can cover the mortgage, one must consider the typical mortgage rate and terms. Assuming a standard 30-year fixed-rate mortgage with an interest rate of 5%, the monthly payment on a $202,250 home would be approximately $1,100. This exceeds the FMR, indicating that rental income alone may not cover the mortgage.
The second objection concerns the adequacy of renter demand at 19.8%. Although this percentage suggests a relatively low share of renters compared to homeowners, it does not necessarily mean there is insufficient demand. The actual number of renters in the area and their willingness to pay market rates are critical factors. Additionally, the local economy and job market can influence rental demand. However, the data provided does not offer detailed insights into these aspects.
The final concern is whether Section 8 vouchers will keep pace with market rents of $1,023. In ZIP 66835, the voucher amount may not fully cover the market rent, leaving a shortfall for landlords. It's important to note that while the voucher can provide a steady source of income, the landlord may need to supplement the difference to maintain profitability. Voucher amounts are typically adjusted annually based on the HUD’s Fair Market Rents, but the exact timing and extent of these adjustments are not specified in the available data.
In summary, the FMR in ZIP 66835 may not fully cover the mortgage on a home valued at $202,250. The renter demand, while modest, does not definitively indicate a lack of opportunity. Lastly, Section 8 vouchers may not completely align with market rents, necessitating additional consideration by landlords.
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.