Location: Reno County, 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 | $830 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,470 |
| 4 Bedrooms | $1,820 |
| 5 Bedrooms | $2,111 |
| 6 Bedrooms | $2,364 |
| 7 Bedrooms | $2,553 |
| 8 Bedrooms | $2,681 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,110 | $230,366 | 0.48% | F |
| 3BR | $1,470 | $301,468 | 0.49% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP 67050, Garden Plain, KS, might raise several valid concerns regarding the feasibility of investing in this area. Here, we address these concerns with the available data.
Objection 1: Will Fair Market Rent (FMR) of $1090 (for ZIP 67050 in fiscal year 2024) cover the mortgage on a $322,235 home?
The FMR of $1090 in ZIP 67050 is indeed a critical figure when considering the viability of rental income to cover mortgage expenses. To evaluate this, one must consider the typical mortgage rates and terms. Assuming a 30-year fixed-rate mortgage with an interest rate of 4%, the monthly mortgage payment for a $322,235 home would be approximately $1535. This amount does not include property taxes, insurance, and maintenance costs, which can add significantly to the total monthly expense. Given that the FMR is $1090, it falls short of covering the mortgage payment alone, let alone other associated costs. Therefore, relying solely on FMR would not be sufficient to cover the mortgage on a home valued at $322,235 in this ZIP code.
Objection 2: Is there enough renter demand at 16.2%?
The percentage of renter-occupied housing units in ZIP 67050 is 16.2%. This figure suggests a relatively low demand for rentals compared to owner-occupied homes. However, the absolute number of renters is also important. If the total number of housing units is high, even a low percentage could represent a significant number of potential tenants. The data provided does not specify the total number of housing units, making it difficult to determine if the demand is sufficient. Landlords and investors should conduct further research to understand the local rental market dynamics and ensure that there is a stable tenant base.
Objection 3: Will vouchers keep pace with market rents of $985?
The Housing Choice Voucher program, commonly known as Section 8, aims to help low-income families afford decent, safe, and sanitary housing. In ZIP 67050, the market rent for a two-bedroom apartment is $985. While the voucher program typically covers a substantial portion of the rent, it is crucial to verify whether the voucher amounts will align with the market rents. According to HUD guidelines, voucher payments are adjusted annually based on changes in the FMR. As long as the FMR increases in line with market rents, voucher holders should be able to afford units priced at $985. However, if the FMR adjustments lag behind actual market rent increases, there could be a gap between what vouchers cover and what landlords charge. It's advisable to monitor both FMR and actual market rent trends to ensure sustained profitability.
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.