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 | $1,070 |
| 1 Bedroom | $1,140 |
| 2 Bedrooms | $1,440 |
| 3 Bedrooms | $1,910 |
| 4 Bedrooms | $2,360 |
| 5 Bedrooms | $2,738 |
| 6 Bedrooms | $3,067 |
| 7 Bedrooms | $3,312 |
| 8 Bedrooms | $3,478 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,440 | $307,914 | 0.47% | F |
| 3BR | $1,910 | $320,962 | 0.6% | F |
| 4BR | $2,360 | $364,198 | 0.65% | D |
| 5BR | $2,738 | $463,746 | 0.59% | F |
U.S. Census Bureau data (2024)
A landlord considering purchasing a property in ZIP 67205 (Wichita, KS) for Section 8 investment must follow a structured decision-making process based on the following criteria:
Step 1: Debt Service Coverage Ratio (DSCR)
The Fair Market Rent (FMR) for ZIP 67205 in fiscal year 2024 is $1530. This figure needs to be compared against the debt service of a property valued at $363,195. To determine if this amount clears the debt service, calculate the DSCR. If the DSCR is greater than 1, then the answer is yes; otherwise, no.
Step 2: Market Rent Comparison
The Zillow Observed Rental Index (ZORI) for ZIP 67205 stands at $1,506. Compare this with the FMR of $1530. If market rent is above the FMR, it indicates that the property can potentially generate higher income outside of Section 8. If it is at or below the FMR, then the rental income will likely align closely with what Section 8 tenants can pay.
Step 3: Rental Demand Assessment
ZIP 67205 has a rental rate of 20.6%, meaning that slightly more than one-fifth of the residents are renters. Additionally, the days on market (DOM) for rental listings is 42 days. To assess whether there is enough demand, consider the rental rate and DOM. A rental rate above 20% combined with a DOM under 60 days suggests sufficient demand. However, if the rental rate is lower or the DOM is significantly higher, demand might not be robust enough to support a Section 8 investment.
No. The property would not be financially viable for a Section 8 investment as the rental income would not sufficiently cover the mortgage and other expenses.
It depends on the market rent and rental demand. Continue to the next steps.
Yes. There is potential for higher rental income, which could offset any financial risks associated with Section 8.
It depends on the rental demand. Proceed to evaluate the rental rate and DOM.
Yes. Given the rental rate and DOM, the demand is strong enough to support a Section 8 investment.
No. The low rental rate and high DOM imply weak demand, making it a risky investment for Section 8.
In conclusion, the viability of a Section 8 investment in ZIP 67205 hinges on the ability of the FMR to cover debt service, the relationship between market rent and FMR, and the strength of rental demand. Use these metrics to make an informed decision.
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.