Section 8 Fair Market Rent (FMR) for ZIP 66938 - 2027

Location: Washington County, KS | Metro: Clay County, KS

Investment Score for ZIP 66938

B
Monthly Rent (2BR)
$960
Median Price (2BR)
$90,136
1% Rule
1.07%
Annual Yield
12.78%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$710
1 Bedroom$790
2 Bedrooms$960
3 Bedrooms$1,160
4 Bedrooms$1,400
5 Bedrooms$1,624
6 Bedrooms$1,819
7 Bedrooms$1,965
8 Bedrooms$2,063

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
2BR $960 $90,136 1.07% B
3BR $1,160 $152,972 0.76% D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
1,191
Median Household Income
$55,284
Housing Units
570
Renter Percentage
13.2%
Occupancy Rate
91.8%
Renter Occupied
69

The classification of ZIP 66938, Clyde, KS, on the axes of yield and stability reveals a market that leans towards steady cash flow rather than high-yield/low-stability. The primary driver of this assessment is the Federal Market Rent (FMR) figure of $910 for the metro area in fiscal year 2026, which contrasts with the local market rent of $672. This suggests that while there is a subsidy available through the Section 8 program, the gap between the FMR and market rent is relatively narrow, indicating less potential for speculative investment gains.

The median home value of $129,124 in ZIP 66938 provides a baseline for property costs. Given the lower market rent compared to the FMR, landlords can expect a moderate return on investment without the high-risk profile associated with areas where market rents are significantly below the FMR. The rental rate in the area is also indicative of stability, with 13.2% of residents being renters. While this percentage is not exceptionally high, it does suggest a consistent demand for rental properties.

The average household income of $55,284 further supports the notion of stability. Higher incomes generally correlate with a more reliable tenant pool, capable of maintaining regular rental payments. The lack of data on days on market (DOM) could indicate either a well-balanced market or an underdeveloped real estate sector, but given the other metrics, it's reasonable to assume a stable environment for rentals.

In conclusion, ZIP 66938 is best classified as a steady-cashflow zone. The modest difference between the FMR ($910) and the market rent ($672), combined with the median home value ($129,124) and average income ($55,284), supports a strategy focused on long-term, consistent returns rather than short-term flips or high-risk investments.

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.