Location: Elk County, KS | Metro: Chautauqua County, KS
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,640 |
| 5 Bedrooms | $1,902 |
| 6 Bedrooms | $2,130 |
| 7 Bedrooms | $2,300 |
| 8 Bedrooms | $2,415 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate picture for ZIP code 67352 is limited due to the lack of specific market data. However, we can still derive some insights based on the available information.
The Fair Market Rent (FMR) for a two-bedroom apartment in ZIP 67352 for fiscal year 2026 is set at $880 per month. This figure represents the annualized rental income that a property owner could expect from a tenant participating in the Section 8 program. Given that the median home value is not available, we must rely on other metrics to estimate the gross yield.
In the absence of a direct market rent figure, the gross yield derived from the FMR can be calculated if we assume a typical property value. For instance, if we hypothetically value a property at $150,000, the annual rent would amount to $10,560 ($880 x 12 months). The implied gross yield from this scenario would be approximately 7.04% ($10,560 / $150,000).
The reality of the situation, however, is that the actual market rent is not provided, making it difficult to compare directly with the Section 8 rent. Without this crucial piece of data, investors cannot accurately assess the potential difference in returns between market-rate rentals and those under the Section 8 program.
Given the 11.7% renter density in the area, it's important to note that there may be a smaller pool of potential tenants for Section 8 properties compared to areas with higher renter densities. This factor should influence the decision-making process for landlords and small-portfolio investors considering participation in the Section 8 program.
The Days on Market (DOM) is also not specified, which would typically provide insight into how quickly properties are rented out. A lower DOM would generally indicate a faster turnover rate and potentially less vacancy risk, whereas a higher DOM might suggest challenges in finding tenants, even within the Section 8 program.
To conclude, while the FMR provides a baseline for estimating the gross yield from Section 8 rentals, the lack of specific market rent and median home value data means that a precise cap-rate comparison cannot be made. Investors should consider the local rental market conditions and the specific terms of the Section 8 program when evaluating the feasibility and profitability of participating in this housing assistance program.
Data Sources: FMR data from HUD (2027). 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.