Location: Marion County, KS | Metro: Chase County, KS
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,220 |
| 4 Bedrooms | $1,260 |
| 5 Bedrooms | $1,462 |
| 6 Bedrooms | $1,637 |
| 7 Bedrooms | $1,768 |
| 8 Bedrooms | $1,856 |
U.S. Census Bureau data (2024)
A landlord considering ZIP 66858 for Section 8 investments must evaluate several factors to make an informed decision. The first question is whether the Fair Market Rent (FMR) of $880 can cover the debt service on a property valued at $141,059. To determine this, calculate the annual debt service, which includes mortgage payments, property taxes, insurance, and maintenance costs. For a typical financing scenario with a 30-year fixed-rate mortgage at 4%, property taxes at 1%, and insurance and maintenance costs at 1%, the total annual debt service would be approximately $7,600. Given that the FMR of $880 per month translates to $10,560 annually, it does clear the debt service, indicating a positive financial outcome.
The second question involves comparing the market rent of $569 to the FMR. In this case, the market rent is below the FMR, suggesting a potential upside for landlords who can secure Section 8 tenants. However, if market conditions are such that non-subsidized tenants are easily found, the difference might not be significant. Landlords should consider the local vacancy rates and tenant preferences to decide whether to aim for market rents or Section 8 subsidies.
The third question assesses the rental demand. With 6.3% of residents identified as renters and the days on the market (DOM) being listed as N/A, there is limited data to fully evaluate demand. However, the percentage of renters indicates a modest but present demand. Landlords should investigate further into the local rental market dynamics, including vacancy rates and the number of available units. If the vacancy rate is low and there is a high turnover of rental properties, this could suggest strong demand despite the limited percentage of renters.
Decision Tree:
Based on these criteria, ZIP 66858 presents a viable opportunity for Section 8 investments, contingent upon thorough local market analysis.
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.