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 | $730 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $980 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,610 |
| 5 Bedrooms | $1,868 |
| 6 Bedrooms | $2,092 |
| 7 Bedrooms | $2,259 |
| 8 Bedrooms | $2,372 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $980 | $85,602 | 1.14% | B |
| 3BR | $1,300 | $225,525 | 0.58% | F |
| 4BR | $1,610 | $256,574 | 0.63% | D |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 67210 in Kansas provides insight into potential investment opportunities. To begin, let's consider the Fair Market Rent (FMR) for a two-bedroom apartment, which is set at $910 annually for fiscal year 2024. Using this figure, we can calculate the implied gross yield. Given the median home value of $223,292 in the area, the annualized FMR represents a gross yield of approximately 4.08%. This calculation is derived from dividing the annual FMR ($910) by the median home value ($223,292).
Next, we'll examine the market rent scenario. The Census ACS indicates that the market rent for a similar property is $938 annually. When applied to the median home value, this translates to a gross yield of about 4.19%. This is slightly higher than the FMR-based yield, reflecting the premium landlords might charge over the subsidized rates.
To determine which scenario is more realistic, it's essential to consider the local rental market conditions. ZIP 67210 has a renter density of 59.0%, indicating a significant portion of the population rents rather than owns their homes. This high percentage suggests a robust demand for rental properties, including those under Section 8. However, the lack of data on days on market (DOM) makes it challenging to assess how quickly properties might be rented out under either scenario.
Despite the missing DOM information, the gross yields provide a clear comparison. At 4.08%, the FMR-based yield is lower than the market rent yield of 4.19%. For landlords and small-portfolio investors, the market rent yield is generally more desirable due to its higher return. However, the Section 8 program offers stability and a guaranteed income stream, albeit at a slightly lower yield. Investors should weigh these factors carefully, considering the trade-off between higher immediate returns and the security of long-term, stable rental income.
In conclusion, while the market rent scenario offers a marginally better gross yield, the decision to participate in Section 8 should also account for the unique benefits and risks associated with the program. The analysis shows that both options present viable investment opportunities, but the choice depends on individual investor preferences and financial goals.
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.