Location: Pratt County, KS | Metro: Barber County, KS
| Unit Size | Monthly FMR |
|---|---|
| Studio | $730 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $980 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,380 |
| 5 Bedrooms | $1,601 |
| 6 Bedrooms | $1,793 |
| 7 Bedrooms | $1,936 |
| 8 Bedrooms | $2,033 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 67028 reveals some interesting insights, though limited data presents challenges. The Fair Market Rent (FMR) for a two-bedroom apartment in the metro area for FY 2026 is set at $920 per month. This figure annualizes to $11,040, providing a benchmark for rental income expectations under the Section 8 program.
Unfortunately, the median home value for ZIP 67028 is not available, which complicates the calculation of a precise cap rate. However, we can still derive an implied gross yield based on the FMR. Assuming a typical home in this area has a two-bedroom configuration, the implied gross yield would be the annualized FMR divided by the median home value. Without the median home value, we cannot compute this directly, but it's crucial for understanding potential returns.
The renter density in ZIP 67028 is 7.1%, indicating that a relatively small portion of the population rents homes. This low density suggests that the demand for rental properties, including those participating in Section 8, might be lower compared to areas with higher renter populations. The Days on Market (DOM) is also not available, which could provide further insight into how quickly rental units are filled in this area.
Given the annualized FMR of $11,040, if you were to compare this against a hypothetical median home value, say $200,000 for illustrative purposes, the implied gross yield would be 5.52%. This is calculated as $11,040 / $200,000 * 100. However, without the actual median home value, this scenario remains speculative.
A more realistic approach would involve using the actual median home value when it becomes available. Until then, the annualized FMR serves as a reliable indicator of potential rental income under Section 8. Landlords and small-portfolio investors should consider the 7.1% renter density when assessing the likelihood of finding tenants and the stability of rental income.
In conclusion, while the exact cap rate cannot be determined due to missing data, the implied gross yield based on the FMR provides a starting point for investment analysis. The low renter density suggests that investors should be cautious and thorough in their evaluation of the local rental market before committing to Section 8 participation.
Data Sources: FMR data from HUD (2027). 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.