Location: Kingman County, KS | Metro: Sumner County, 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 | $680 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,180 |
| 4 Bedrooms | $1,330 |
| 5 Bedrooms | $1,543 |
| 6 Bedrooms | $1,728 |
| 7 Bedrooms | $1,866 |
| 8 Bedrooms | $1,959 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,180 | $145,678 | 0.81% | C |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 67004 might raise several concerns regarding the feasibility of investing in rental properties within this area. Let's address these concerns using available data.
Objection 1: Will Fair Market Rent (FMR) of $880 cover the mortgage on a $139,959 home?
The FMR of $880 is a critical figure for determining if rental income can support the mortgage payments on a property priced at $139,959. To accurately assess this, we need to consider the prevailing interest rates and typical loan terms. Assuming a standard 30-year fixed-rate mortgage and an average interest rate of 5%, the monthly mortgage payment on a $139,959 home would be approximately $750. Therefore, the FMR of $880 is sufficient to cover the mortgage payment, leaving a buffer of around $130 per month. However, this calculation does not include other expenses such as property taxes, insurance, and maintenance costs, which must also be factored into the overall financial planning.
Objection 2: Is there enough renter demand at 14.2%?
The 14.2% renter-occupied housing rate might seem low compared to national averages, raising questions about the potential occupancy and demand for rental properties. However, this percentage reflects the local context and does not necessarily indicate a lack of demand. It's important to note that even with a lower renter-occupied rate, the actual number of renters can still be significant depending on the total population and household numbers. Additionally, the demand for rentals can vary widely based on factors such as employment opportunities, local amenities, and proximity to urban centers. The data does not provide insights into these factors, but it's worth investigating further to understand the underlying dynamics driving the rental market in ZIP 67004.
Objection 3: Will vouchers keep pace with $708 market rents?
The market rent of $708 is another key metric to consider when evaluating the investment potential of ZIP 67004. Vouchers, which are often used by tenants in Section 8 properties, have limits that vary by location and family size. While the data does not specify the exact voucher limit for ZIP 67004, it's crucial to compare the market rent against the maximum voucher amount allowed. If the voucher limit is below $708, landlords might face challenges in covering their costs, especially if they rely heavily on voucher recipients. Conversely, if the voucher limit is close to or exceeds $708, it suggests that vouchers will likely cover most of the rental costs, making the investment more attractive. Investors should verify the current voucher limits and any adjustments planned for the future to ensure long-term financial stability.
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.