Location: Chase County, KS | Metro: Chase 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 | $710 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,270 |
| 4 Bedrooms | $1,420 |
| 5 Bedrooms | $1,647 |
| 6 Bedrooms | $1,845 |
| 7 Bedrooms | $1,993 |
| 8 Bedrooms | $2,093 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $960 | $101,767 | 0.94% | C |
| 3BR | $1,270 | $170,935 | 0.74% | D |
U.S. Census Bureau data (2024)
The Section 8 thesis for real estate investment in ZIP code 66845, specifically Cottonwood Falls, KS, is based on the favorable gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area for fiscal year 2026 is set at $880, while the Census ACS reports the current market rent at $843. This creates a $37 gap, which translates into a 4.4% premium for landlords accepting Section 8 vouchers.
In Cottonwood Falls, where only 20.6% of residents are renters, the median home value stands at $130,458, indicating that homeownership is prevalent and rents might not be as competitive as in larger metropolitan areas. Given the median household income of $51,771, the rental market is likely sensitive to price changes, making it an ideal scenario for leveraging the Section 8 program.
The FMR being higher than the market rent means that voucher tenants can pay above the local average rent, thus providing a yield play for landlords. Accepting Section 8 vouchers ensures a steady stream of income, backed by federal funds, which is particularly beneficial in a market where rents are generally lower than the FMR. Landlords can capitalize on this discrepancy by renting units at the FMR rate, thereby maximizing their returns on investment.
Moreover, the higher FMR rate supports the financial viability of rental properties in Cottonwood Falls. It helps cover the costs associated with maintaining and managing rental properties, ensuring that landlords do not incur losses when housing voucher tenants at rates below the open-market level. This makes Section 8 an attractive option for landlords and small-portfolio investors looking to secure consistent and reliable rental income in a stable community setting.
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.