Location: Pratt County, KS | Metro: Edwards County, KS
| Unit Size | Monthly FMR |
|---|---|
| Studio | $750 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,370 |
| 5 Bedrooms | $1,589 |
| 6 Bedrooms | $1,780 |
| 7 Bedrooms | $1,922 |
| 8 Bedrooms | $2,018 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 67059 reveals a distinct picture regarding the potential for Section 8 properties compared to market rents. To start, let's annualize the key figures. For a two-bedroom property, the Fair Market Rent (FMR) for Section 8 is set at $990 per month, equating to an annual rent of $11,880. The median home value in the area is $139,475.
The implied gross yield for a Section 8 property can be calculated by dividing the annual rent by the median home value. In this case, that would be $11,880 divided by $139,475, resulting in a gross yield of approximately 8.5%. This is a straightforward figure that reflects the income potential if the property were rented under the Section 8 program.
In contrast, the market rent for a two-bedroom property is $525 per month, or $6,300 annually. Using the same median home value, the gross yield based on market rent is significantly lower, coming out to about 4.5%. This stark difference highlights the financial benefit of participating in the Section 8 program over renting at market rates.
Given the 21.1% renter density in ZIP 67059, it's important to note that while there is a substantial portion of renters, the exact demand for Section 8 housing cannot be determined without further data. However, the higher gross yield of 8.5% versus the market rate yield of 4.5% makes the Section 8 scenario more attractive for investors looking to maximize returns.
The lack of data on the number of days on market (DOM) for rental listings in ZIP 67059 complicates a full assessment of rental market dynamics. Nonetheless, the significant disparity in gross yields between Section 8 and market rents suggests that the Section 8 scenario offers a better financial outcome for landlords and small-portfolio investors. It's crucial for investors to consider these figures when evaluating the potential profitability of properties in this ZIP code.
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.