Location: Labette County, KS | Metro: Labette County, KS
| Unit Size | Monthly FMR |
|---|---|
| Studio | $730 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 67354 reveals some interesting dynamics between government-subsidized rents and market rates. To start, annualizing the 2BR Fair Market Rent (FMR) at $930 for fiscal year 2026 provides a subsidy-driven gross yield. The calculation is straightforward: divide the annualized FMR by the median home value. In this case, the annualized FMR is $930 * 12 months = $11,160. Dividing $11,160 by the median home value of $143,236 yields an implied gross yield of approximately 7.8%. This represents the potential rental income if the property were leased under Section 8 guidelines.
In contrast, using the market rent figure of $435 per month from the Census ACS, the annualized market rent would be $435 * 12 months = $5,220. When divided by the median home value of $143,236, this results in an implied gross yield of about 3.6%. This lower yield reflects the typical market conditions for renting in ZIP code 67354.
Given the 14.5% renter density, it's important to note that the majority of homeowners in this area are likely owner-occupiers rather than landlords. This suggests that the market rent scenario is more reflective of the actual rental environment, as it accounts for the broader housing market dynamics. However, the higher gross yield from the Section 8 scenario could be attractive to investors willing to navigate the complexities of the program.
The N/A-day Days on Market (DOM) indicates incomplete data regarding how quickly properties are rented out. Despite this, the 14.5% renter density implies that the market is not heavily reliant on rental properties, which could affect the speed and ease of finding tenants. For landlords considering Section 8, the higher gross yield must be weighed against the additional administrative burden and the potential impact of renter density on occupancy rates.
To summarize, the Section 8 cap rate for ZIP 67354 offers an implied gross yield of around 7.8%, while the market rent scenario yields approximately 3.6%. Investors should consider these figures alongside the local rental market characteristics and the specific requirements of the Section 8 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.