Location: Coffey County, KS | Metro: Topeka, KS MSA
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 | $800 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,610 |
| 5 Bedrooms | $1,868 |
| 6 Bedrooms | $2,092 |
| 7 Bedrooms | $2,259 |
| 8 Bedrooms | $2,372 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,090 | $135,149 | 0.81% | C |
| 3BR | $1,300 | $246,690 | 0.53% | F |
U.S. Census Bureau data (2024)
In evaluating the potential of ZIP 66871, Waverly, KS, for Section 8 investments, several key concerns arise that must be addressed with precision. One primary objection is whether the Fair Market Rent (FMR) of $930 for the fiscal year 2024 will sufficiently cover the mortgage on a home priced at $222,910. To clarify, the FMR represents the maximum amount set by HUD for a standard-quality rental unit. In Waverly, the FMR suggests a moderate level of income support for tenants, but it does not guarantee that the mortgage will be fully covered. The actual coverage depends on the mortgage rate and terms. Assuming a typical 30-year fixed-rate mortgage at around 5%, the monthly payment on a $222,910 home would be approximately $1,180. This means that the FMR of $930 falls short by about $250 per month, indicating that additional income sources or a lower mortgage rate would be necessary.
A second objection pertains to the rental demand in Waverly, which stands at 14.9%. This percentage reflects the proportion of the population that rents their homes. While 14.9% is relatively low compared to urban areas, it does not necessarily imply insufficient demand for Section 8 properties. It's important to consider the local context, including the availability of affordable housing and the needs of low-income families. However, the data alone does not provide a comprehensive picture of the rental market dynamics or the competition for tenants in this area. Further investigation into local housing trends and vacancy rates would offer a clearer understanding of the potential demand.
The final concern is whether the Housing Choice Voucher program will keep pace with the market rents of $838. The voucher program aims to cover a significant portion of a tenant's rent, typically up to 30% of the FMR. Given the FMR of $930, vouchers should theoretically cover up to $279 towards the $838 market rent. However, the adequacy of this coverage can vary based on individual tenant incomes and the specific rules of the local housing authority. Moreover, the long-term sustainability of voucher payments is subject to federal funding levels and policy changes. As such, while the current FMR provides a basis for reasonable rent expectations, investors should remain vigilant regarding any shifts in federal funding or local administration policies that could impact the reliability of voucher payments.
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.