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 | $1,160 |
| 1 Bedroom | $1,230 |
| 2 Bedrooms | $1,560 |
| 3 Bedrooms | $2,070 |
| 4 Bedrooms | $2,560 |
| 5 Bedrooms | $2,970 |
| 6 Bedrooms | $3,326 |
| 7 Bedrooms | $3,592 |
| 8 Bedrooms | $3,772 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,560 | $325,234 | 0.48% | F |
| 3BR | $2,070 | $357,287 | 0.58% | F |
| 4BR | $2,560 | $423,651 | 0.6% | D |
| 5BR | $2,970 | $548,138 | 0.54% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 67230, located in Wichita, Kansas, centers around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1530, while the Census American Community Survey (ACS) indicates that the market rent stands at $1652. This creates a gap of $122, representing a 7.9% difference between the two figures.
Given that the FMR is lower than the market rent, landlords and small-portfolio investors should be aware of the potential costs associated with accepting housing vouchers. The lower FMR means that landlords might have to accept a rate that is below what they could charge in the open market. This scenario can lead to reduced cash flow and potentially lower yields compared to renting to non-voucher tenants.
In the broader context of Wichita, KS, it's important to note that only 6.8% of the population are renters. The median home value in the area is $436,594, and the median household income is $149,536. These factors suggest a relatively affluent market where homeownership is more prevalent than renting. However, the presence of Section 8 voucher holders provides an opportunity for landlords to tap into a segment of the population that might otherwise struggle to find affordable housing.
To mitigate the impact of the lower FMR, landlords can focus on maximizing efficiency and minimizing vacancies. Additionally, maintaining a property that attracts voucher holders can be a strategic move, especially if there is a high demand for affordable housing in the area. It's also crucial to consider the stability that comes with having a guaranteed source of rental income through the government subsidy program.
While the FMR is set below the market rent, it does not necessarily mean that landlords will incur losses. The stability of the tenant base and the predictability of rental income can offset the lower rates. Furthermore, the long-term benefits of a consistent rental stream can outweigh the short-term financial impacts of accepting a slightly lower rent.
In conclusion, the gap between the FMR and market rent in ZIP 67230 presents both challenges and opportunities for landlords. Understanding the local context of Wichita, including its low percentage of renters and higher median incomes, is key to making informed decisions about whether to participate in the Section 8 program. By carefully managing their properties and considering the broader implications of the program, landlords can leverage the opportunity to serve a critical need in the community while maintaining a viable investment strategy.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.