Location: Reno County, KS | Metro: Kingman 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 | $710 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,560 |
| 5 Bedrooms | $1,810 |
| 6 Bedrooms | $2,027 |
| 7 Bedrooms | $2,189 |
| 8 Bedrooms | $2,298 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,330 | $220,889 | 0.6% | D |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate scenario for ZIP code 67035 provides insights into potential rental yields for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a two-bedroom apartment in the metro area for fiscal year 2026 is set at $880 per month. Using this figure, the annualized income would be $10,560. Against the median home value of $189,768, this translates into an implied gross yield of approximately 5.57%. This calculation is based on the assumption that the property can be rented at the FMR rate, which is a benchmark set by the government.
In contrast, the market rent for a two-bedroom apartment, as indicated by the Census ACS, stands at $621 per month. Annualizing this figure gives us an annual rent of $7,452. When compared to the median home value, this yields an implied gross yield of about 3.93%. This figure reflects the actual market conditions and what tenants might be willing to pay in ZIP 67035.
The renter density of 15.0% suggests that a significant portion of the population in ZIP 67035 is already renting, which could impact the demand for rental properties. However, the N/A-day DOM (Days on Market) indicates incomplete data, making it challenging to assess how quickly properties are being leased. Given these factors, the market rent scenario appears more realistic for most investors. While the FMR-based yield is higher, it assumes that the landlord can command a premium over the typical market rate, which may not always be feasible.
For landlords and investors looking to enter the Section 8 housing market in ZIP 67035, the lower gross yield based on market rent should be considered. Although the potential for higher returns exists under the FMR scenario, the actual performance is likely to align closer to the market rent, providing a more stable and predictable income stream. Investors should use these figures as a starting point for their own detailed calculations, factoring in their specific expenses and investment goals.
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.