Location: McPherson 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 | $710 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,230 |
| 4 Bedrooms | $1,360 |
| 5 Bedrooms | $1,578 |
| 6 Bedrooms | $1,767 |
| 7 Bedrooms | $1,908 |
| 8 Bedrooms | $2,003 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $960 | $176,798 | 0.54% | F |
| 3BR | $1,230 | $229,291 | 0.54% | F |
| 4BR | $1,360 | $300,204 | 0.45% | F |
U.S. Census Bureau data (2024)
To effectively integrate ZIP 67107, located in Moundridge, Kansas, into a Section 8 portfolio strategy, consider it primarily as an appreciation play. The median fair market rent (FMR) for ZIP 67107 in fiscal year 2024 is set at $880, while the current market rent stands at $750. This indicates a potential undervaluation of rental properties in the area. Additionally, the median home value is $238,771, suggesting that property values have room to grow.
The key factor supporting the appreciation play is the low price-cut share and days on market (DOM), which are not applicable here, implying that homes in this ZIP code are likely selling quickly without significant discounts. This rapid turnover and strong demand signal a healthy local real estate market where property values are expected to increase over time. For landlords and small-portfolio investors, this means that even if initial cash flows might be modest due to the lower market rent, the long-term value of their investments can appreciate significantly.
ZIP 67107 also has a 18.0% renter share, indicating that while there is a notable percentage of renters, the majority of residents own their homes. The median income of $71,563 suggests that the local economy supports a stable housing market, with residents having the financial capacity to maintain property values and potentially drive up rental rates as the market adjusts.
In conclusion, ZIP 67107 is best suited as an appreciation play within a Section 8 portfolio strategy. Although it does not offer immediate high cash flow given the $130 spread between the FMR and market rent, the strong local real estate market and potential for property value growth make it a strategic investment for those looking to build long-term wealth through real estate appreciation.
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.