Location: Wichita, 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 | $790 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,740 |
| 5 Bedrooms | $2,018 |
| 6 Bedrooms | $2,260 |
| 7 Bedrooms | $2,441 |
| 8 Bedrooms | $2,563 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,060 | $218,422 | 0.49% | F |
| 3BR | $1,400 | $308,852 | 0.45% | F |
| 5BR | $2,018 | $626,947 | 0.32% | F |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 67001, which encompasses Andale, Kansas, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1180, while the Census American Community Survey (ACS) reports the market rent at $1,063. This indicates that the FMR is $117 higher than the market rent, representing an increase of approximately 11%.
This gap makes Andale an attractive yield play for landlords and small-portfolio investors. The higher FMR compared to the market rent means that voucher tenants can pay a rate closer to the FMR, thus providing a better return on investment than what might be expected from the open market. However, it's important to consider the broader economic context of Andale, where only 2.6% of residents are renters. This low rental rate suggests a limited pool of potential tenants, which could impact occupancy rates.
The median home value in Andale is $359,103, indicating a relatively stable housing market. Meanwhile, the median household income stands at $98,661, suggesting that many residents may have the financial capacity to purchase homes rather than rent. Given these factors, landlords who accept Section 8 vouchers can expect to receive a rent payment that is above the local market average, thereby improving their cash flow and overall profitability.
Investors should also be aware of the potential costs associated with housing voucher tenants below open-market rates. While the FMR provides a benchmark that is favorable in this case, landlords must ensure compliance with HUD regulations, including maintaining property standards and undergoing regular inspections. These requirements can add operational costs, but the increased rent payments from voucher tenants can offset these expenses.
In conclusion, the Section 8 program in Andale presents a compelling opportunity for landlords and small-portfolio investors due to the $117 or 11% premium over market rents. This premium, combined with the stability provided by government-backed payments, can enhance investment yields despite the challenges posed by a low rental population and stringent regulatory requirements.
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.