Location: Wichita, 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 | $780 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,710 |
| 5 Bedrooms | $1,984 |
| 6 Bedrooms | $2,222 |
| 7 Bedrooms | $2,400 |
| 8 Bedrooms | $2,520 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $820 | $83,506 | 0.98% | C |
| 2BR | $1,040 | $138,354 | 0.75% | D |
| 3BR | $1,380 | $212,026 | 0.65% | D |
| 4BR | $1,710 | $310,008 | 0.55% | F |
| 5BR | $1,984 | $435,047 | 0.46% | F |
U.S. Census Bureau data (2024)
The HUD Fair Market Rent (FMR) for ZIP code 67204 in Wichita, Kansas, for fiscal year 2024 is set at $940. This figure represents the baseline amount that landlords can charge for a Section 8 voucher tenant. However, the Zillow Observed Rent Index (ZORI) for the same area stands at $1,424, indicating that the market rent significantly exceeds the HUD FMR.
Voucher tenants in ZIP 67204 will only cash flow marginally at the HUD FMR. The gap between the market rent and the HUD FMR suggests that landlords accepting Section 8 vouchers must carefully manage their expenses to maintain profitability. For instance, a landlord would need to ensure low vacancy rates and minimal maintenance costs to achieve positive cash flow at $940 per month.
The median home value in ZIP 67204 is $196,422. To derive the rent-to-price ratio, we divide the HUD FMR by the median home value. This results in a monthly rent-to-price ratio of approximately 0.47%, which is quite low compared to typical market standards. A lower rent-to-price ratio can indicate a less attractive investment opportunity for buy-and-rent strategies, but it remains crucial for understanding the local rental market dynamics.
The 30-day median Days on Market (DOM) and the 0.2% price-cut share suggest that the rental market in ZIP 67204 is relatively stable and competitive. Tenants are finding homes quickly, and there is little pressure to reduce rental prices. These factors point to a balanced market where neither landlords nor tenants have significant leverage over pricing.
The strongest angle for Section 8 investors in ZIP 67204 is stability. While cash flow might be limited due to the disparity between HUD FMR and market rents, the consistent demand for affordable housing and the stable market conditions provide a reliable and predictable investment environment.
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.