Location: Labette County, KS | Metro: Labette County, KS
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 | $850 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,670 |
| 5 Bedrooms | $1,937 |
| 6 Bedrooms | $2,169 |
| 7 Bedrooms | $2,343 |
| 8 Bedrooms | $2,460 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,220 | $92,525 | 1.32% | A |
| 3BR | $1,450 | $149,772 | 0.97% | C |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 67330, centered around Altamont, Kansas, highlights a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $1,000, while the market rent based on Census ACS data stands at $967. This creates a gap of $33, or 3.4% below the FMR.
Given that the FMR exceeds the market rent, this scenario presents an opportunity for landlords and small-portfolio investors to engage in a yield play. Voucher tenants, under the Section 8 program, can offer a stable source of rental income. The government will cover the difference between the actual market rate and the FMR, ensuring that landlords receive a higher rent than what the open market offers.
In Altamont, where 25.0% of residents are renters, the median home value is $138,033 and the median income is $75,208. These figures suggest that the local economy supports homeownership but also has a notable rental market. With the FMR above the market rent, landlords can benefit from a guaranteed income stream that is higher than typical rental rates, making it a strategic investment choice.
However, it's crucial to understand the dynamics of the housing voucher program. While the FMR provides a benchmark, the actual payment standard may be lower, depending on the specifics of the housing authority's policies. This means that landlords might not always receive the full FMR amount. Nonetheless, the consistent flow of government-backed payments ensures a reliable revenue source, which is particularly valuable in a market where rental rates are below the FMR.
To summarize, the gap between the FMR and market rent in Altamont, KS, makes it a favorable environment for landlords and small-portfolio investors to consider the Section 8 program. The stable and potentially higher-than-market rental income can enhance yields, providing a solid financial strategy in this ZIP code.
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.