Location: Barber County, KS | Metro: Barber 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 | $730 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,150 |
| 4 Bedrooms | $1,450 |
| 5 Bedrooms | $1,682 |
| 6 Bedrooms | $1,884 |
| 7 Bedrooms | $2,035 |
| 8 Bedrooms | $2,137 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $960 | $76,109 | 1.26% | A |
| 3BR | $1,150 | $112,160 | 1.03% | B |
| 4BR | $1,450 | $156,852 | 0.92% | C |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 67104, Medicine Lodge, KS, reveals interesting insights into potential investment opportunities. The Fair Market Rent (FMR) for a 2-bedroom apartment in the metro area for fiscal year 2026 is set at $880 annually, while the market rent based on Census ACS data stands at $841 per month.
To annualize these figures, the FMR would be $880 x 12 = $10,560, and the market rent would be $841 x 12 = $10,092. Using the median home value of $94,482 as a reference point, we can calculate the implied gross yield for both scenarios. For the FMR scenario, the gross yield is $10,560 / $94,482 = 11.18%. In the case of market rent, the gross yield drops to $10,092 / $94,482 = 10.68%.
Given the 25.6% renter density in the area, it's important to consider how competitive the rental market is. The N/A-day Days on Market (DOM) suggests that either there is an oversupply or undersupply of rental properties, or the data is insufficient to provide a meaningful average. However, considering the relatively low renter density, it's likely that the rental market could be less competitive, making the FMR scenario more realistic.
The higher gross yield of 11.18% based on the FMR is attractive for landlords participating in the Section 8 program. This is because the government guarantees the payment of the rent, reducing the risk of vacancy and non-payment. On the other hand, the market rent scenario, with a gross yield of 10.68%, reflects the current market conditions but without the government guarantee.
In conclusion, while the market rent offers a slightly lower gross yield, the FMR tied to the Section 8 program provides a safer and potentially more profitable option for landlords in ZIP 67104, especially considering the moderate renter density and the lack of clear market dynamics indicated by the N/A-day DOM figure.
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.