Location: Sumner 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 | $1,170 |
| 4 Bedrooms | $1,270 |
| 5 Bedrooms | $1,473 |
| 6 Bedrooms | $1,650 |
| 7 Bedrooms | $1,782 |
| 8 Bedrooms | $1,871 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $960 | $58,185 | 1.65% | A+ |
| 3BR | $1,170 | $127,826 | 0.92% | C |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP 67022 in Caldwell, KS, provides valuable insights into the potential returns for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a 2-bedroom apartment in fiscal year 2024 is set at $880 per month. To annualize this figure, we multiply it by 12, yielding an annual rental income of $10,560.
Given the median home value in Caldwell, KS, stands at $78,711, we can calculate the implied gross yield using the FMR. The gross yield is calculated as the annual rental income divided by the property value. In this case, the gross yield would be approximately 13.42%, calculated as follows: ($10,560 / $78,711) * 100 = 13.42%. This high gross yield suggests that properties in Caldwell, KS, could be particularly attractive for Section 8 investors looking to maximize their rental income relative to the cost of the property.
However, the market rent for a 2-bedroom apartment is listed as N/A, indicating that there is insufficient data to determine a reliable market rent figure. If we were to consider a scenario where market rents match the FMR, the gross yield would remain at 13.42%. But if market rents exceed the FMR, the gross yield would decrease, reflecting a lower return on investment relative to the property's value.
The renter density in Caldwell, KS, is 21.1%, which is relatively low compared to many urban areas. This suggests that there might be fewer tenants seeking rental properties, potentially affecting the occupancy rates and making the FMR scenario more realistic. Additionally, the N/A-day Days on Market (DOM) indicates that there is no recent data available to determine how quickly properties are rented out, further supporting the use of FMR as a benchmark for rental income.
In conclusion, the Section 8 cap rate for ZIP 67022 based on the FMR for a 2-bedroom apartment implies a gross yield of 13.42%. While the lack of market rent data makes it difficult to compare yields directly, the FMR scenario presents a clear and calculable return on investment for landlords and small-portfolio investors considering properties in this area. Given the low renter density and the absence of recent market data, the FMR-based gross yield is the most reliable metric for assessing potential rental income.
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.