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 | $740 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $970 | $92,187 | 1.05% | B |
| 3BR | $1,340 | $160,328 | 0.84% | C |
| 4BR | $1,620 | $234,894 | 0.69% | D |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 67068 in Kingman, KS, reveals an interesting scenario when comparing the Federal Market Rent (FMR) and the market rent against the median home value. Using the annualized 2BR FMR of $880 (for FY 2026, metro), the implied gross yield for a property valued at $142,586 would be approximately 2.45%. This calculation is derived by dividing the annual rental income ($880 * 12 = $10,560) by the median home value ($142,586).
In contrast, using the annualized market rent of $847 (from Census ACS), the implied gross yield drops slightly to about 2.34%. This figure is calculated similarly by multiplying the monthly market rent ($847) by 12 months to get the annual rental income ($10,164) and then dividing that by the median home value ($142,586).
The gross-yield comparison shows a difference of roughly 0.11%, with the FMR yielding a higher return. However, considering the 40.3% renter density in the area, the market rent scenario appears more realistic. The high renter density suggests that there is a substantial demand for rental properties, which could support the market rent being closer to the actual rental income landlords can expect.
The N/A-day DOM (days on market) indicates that there is little to no data available on how quickly rental units are typically leased in Kingman, KS. This lack of information makes it difficult to predict the vacancy rates accurately. However, given the relatively low median home value compared to the rental income, it is reasonable to assume that the market rent of $847 per month provides a more stable and predictable gross yield for investors.
In summary, while the FMR suggests a gross yield of 2.45%, the more realistic market rent scenario points to a gross yield of 2.34%. Investors should consider these figures alongside the local rental market dynamics and the specific characteristics of their properties to determine the most accurate expected returns.
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.