Location: Washington County, KS | Metro: Washington 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 | $940 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,610 |
| 4 Bedrooms | $1,640 |
| 5 Bedrooms | $1,902 |
| 6 Bedrooms | $2,130 |
| 7 Bedrooms | $2,300 |
| 8 Bedrooms | $2,415 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,610 | $205,578 | 0.78% | D |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 66953 reveals a significant disparity between the federal market rent (FMR) and the actual market rent, which impacts the gross yield for potential investments. Using the annualized 2BR FMR of $1,060 for FY 2026, the implied gross yield is calculated as follows: $1,060 multiplied by 12 months equals an annual rental income of $12,720. Dividing this figure by the median home value of $191,310 yields a gross yield of approximately 6.65%. This represents the potential income from a Section 8 tenant.
In contrast, using the Census ACS market rent of $496, the annual rental income would be $496 multiplied by 12 months, totaling $5,952. When this amount is divided by the median home value, the gross yield drops to about 3.11%. This lower yield reflects the typical market conditions for rental properties in ZIP 66953.
Given the 34.3% renter density, it's evident that a substantial portion of the population relies on rental housing, including those who might qualify for Section 8 assistance. However, the N/A-day DOM (days on market) suggests incomplete data regarding how quickly properties are rented out, which could affect vacancy rates and thus the overall yield.
The higher gross yield of 6.65% associated with the FMR is more attractive but less realistic compared to the actual market conditions. The lower gross yield of 3.11%, based on the market rent, aligns better with the current economic landscape of ZIP 66953. Landlords and small-portfolio investors should consider these figures when evaluating the potential returns of properties in this area.
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.