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 | $780 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,360 |
| 5 Bedrooms | $1,578 |
| 6 Bedrooms | $1,767 |
| 7 Bedrooms | $1,908 |
| 8 Bedrooms | $2,003 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $960 | $89,944 | 1.07% | B |
| 3BR | $1,330 | $157,801 | 0.84% | C |
| 4BR | $1,360 | $216,932 | 0.63% | D |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 66968 in Washington, KS, centers around the significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $880, while the Census ACS reports the average market rent at $553. This represents a gap of $327, or 59.1%, where the FMR exceeds the market rent.
This gap makes ZIP 66968 an attractive yield play for landlords and small-portfolio investors. The higher FMR means that voucher tenants can afford to pay up to $880 per month, which is well above the typical market rent. This allows property owners to increase their rental income without having to raise rents beyond what voucher holders can cover. Consequently, properties in this area can be leased at rates closer to the FMR, providing a steady and reliable stream of income.
In Washington, KS, where 24.0% of residents are renters, the median home value stands at $141,412, and the median income is $59,438. These figures suggest a moderate economic environment, where the housing market is not overly competitive. As such, the opportunity to lease properties at the FMR level can be particularly advantageous for landlords looking to maximize returns.
However, it's important to note that leasing properties at rates below the open-market rate due to housing voucher tenants can also present challenges. Landlords must ensure that the properties meet HUD standards and may face additional administrative tasks. Nonetheless, the financial benefits outweigh these costs, given the substantial difference between the FMR and the market rent.
To summarize, the gap between the FMR and market rent in ZIP 66968 presents a clear yield opportunity for landlords and investors. By leveraging the higher FMR through voucher programs, they can secure rental income at levels significantly above the local market average, making this a strategic investment location.
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.