Location: Montgomery County, KS | Metro: Montgomery 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 | $720 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,580 |
| 5 Bedrooms | $1,833 |
| 6 Bedrooms | $2,053 |
| 7 Bedrooms | $2,217 |
| 8 Bedrooms | $2,328 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,000 | $54,025 | 1.85% | A+ |
| 3BR | $1,280 | $119,987 | 1.07% | B |
| 4BR | $1,580 | $189,780 | 0.83% | C |
U.S. Census Bureau data (2024)
An investor considering Section 8 properties in ZIP 67333 (Caney, KS) might have several concerns. Let's address them directly with the available data.
Based on the data from Zillow, a 30-year fixed-rate mortgage with a 7% interest rate and a down payment covering 15% of the home’s price would result in a monthly payment of around $565 for a $92,554 home. This means that the FMR of $950 would indeed cover the mortgage, leaving a surplus of $385 per month. This surplus can be used for maintenance, insurance, property taxes, and other expenses associated with owning a rental property.
The data suggests that approximately 19.8% of housing units in ZIP 67333 are renter-occupied. While this percentage is slightly lower than the 24.6% threshold, it still indicates a significant portion of the housing stock is rented. Additionally, the rental vacancy rate is reported to be zero, which implies strong demand for rental properties in this area. Despite the lower percentage, the actual number of renters may still be sufficient to support Section 8 investments.
The HUD Fair Market Rent for a 1-bedroom in ZIP 67333 is currently $683/month, which represents a 13.6% increase over the past year. However, the market rent is higher at $823/month. The FMR may not fully cover the market rent, but it does provide a substantial amount that can be supplemented by tenant contributions. Investors should be aware that the FMR is designed to cover a significant portion of the rent, but not necessarily the entire amount, especially in areas with higher-than-average rent increases.
In summary, while the data shows that FMR will cover the mortgage and there is strong demand for rentals, the FMR may not entirely match the market rent. However, the gap can often be managed through careful financial planning and understanding of tenant contribution requirements.
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.