Location: Marion County, KS | Metro: Wichita, KS HUD Metro FMR Area
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 | $770 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,400 |
| 5 Bedrooms | $1,624 |
| 6 Bedrooms | $1,819 |
| 7 Bedrooms | $1,965 |
| 8 Bedrooms | $2,063 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,050 | $68,221 | 1.54% | A+ |
| 3BR | $1,340 | $133,117 | 1.01% | B |
U.S. Census Bureau data (2024)
ZIP 66866, encompassing Peabody, KS, within the Marion County, KS metro area, serves as a valuable addition to a Section 8 portfolio strategy. This area stands out as a cash-flow anchor given the spread between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR for a two-bedroom apartment in ZIP 66866 is set at $880, whereas the market rent is only $839. This indicates that landlords participating in the Section 8 program can expect to receive a slightly higher rent than the market average, ensuring positive cash flow.
The median home value in Peabody is $112,994, which is relatively low compared to other areas. This suggests that the real estate market here is stable and less prone to sudden fluctuations, making it a secure investment for those seeking reliable returns.
The area's median income of $58,705 aligns well with the needs of tenants eligible for Section 8 assistance, who typically earn around 50% of the area's median income. With 23.4% of the population renting, there is a substantial demand for rental properties, particularly those supported by government subsidies.
In conclusion, ZIP 66866 is best categorized as a cash-flow anchor within a Section 8 portfolio strategy. The positive spread between FMR and market rent ensures steady income, while the stable real estate market and significant tenant demand make it a solid choice for landlords and small-portfolio investors.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.