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 | $870 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,550 |
| 4 Bedrooms | $1,920 |
| 5 Bedrooms | $2,227 |
| 6 Bedrooms | $2,494 |
| 7 Bedrooms | $2,694 |
| 8 Bedrooms | $2,829 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,170 | $236,953 | 0.49% | F |
| 3BR | $1,550 | $249,898 | 0.62% | D |
| 4BR | $1,920 | $316,221 | 0.61% | D |
| 5BR | $2,227 | $373,459 | 0.6% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 67037, which encompasses Derby, KS, centers around the disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 67037 in fiscal year 2024 is set at $1,160, whereas the market rent, as measured by the Zillow Observed Rent Index (ZORI), stands at $1,442. This represents a gap of $282, or approximately 24.3%, between what landlords can charge under the Section 8 program and the prevailing market rates.
In Derby, KS, where 28.3% of residents are renters and the median home value is $282,714, landlords must carefully consider the implications of accepting Section 8 vouchers. The median income in the area is $85,541, indicating that many households rely on assistance to afford housing. While the lower FMR can serve as a yield play for landlords, it also means they will be receiving less than the open-market rate for their properties.
The cost of housing voucher tenants below open-market rates is significant. For every unit rented through Section 8, landlords forfeit an average of $282 per month, compared to renting without the voucher. Over the course of a year, this amounts to a loss of $3,384 per unit. Given the high median home value and the reliance on rental assistance, landlords should weigh the benefits of guaranteed payments against the reduced rental income.
To summarize, the FMR in Derby, KS is $1,160, while the market rent is $1,442, creating a substantial gap. This gap makes Section 8 a less lucrative option for landlords but still provides a stable tenant base. Landlords should evaluate whether the stability of Section 8 tenants outweighs the financial impact of the lower rent rates.
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.