Location: Neosho 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 | $680 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,160 |
| 4 Bedrooms | $1,330 |
| 5 Bedrooms | $1,543 |
| 6 Bedrooms | $1,728 |
| 7 Bedrooms | $1,866 |
| 8 Bedrooms | $1,959 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $740 | $29,984 | 2.47% | A+ |
| 2BR | $970 | $50,054 | 1.94% | A+ |
| 3BR | $1,160 | $109,362 | 1.06% | B |
| 4BR | $1,330 | $147,869 | 0.9% | C |
| 5BR | $1,543 | $188,034 | 0.82% | C |
U.S. Census Bureau data (2024)
27.2% of residents in ZIP 67357 (Parsons, KS) are renters, indicating a moderate demand for rental properties in the area. The $759 market rent, as reported by the Census ACS, suggests that rental properties should be priced accordingly to remain competitive. However, the $900 Fair Market Rent (FMR) for the metro area in fiscal year 2026 provides a benchmark that is significantly higher, offering landlords an opportunity to increase their rental income without pricing themselves out of the market. This difference between the market rent and the FMR indicates potential for growth in rental rates.
The median home value of $78,606 is relatively low compared to national averages, making it an attractive area for first-time homeowners or investors looking for affordable entry points. Additionally, the median income of $56,438 aligns well with the market rent, suggesting that most residents can afford typical rental costs without financial strain. The absence of a day DOM figure implies that listings are either not tracked accurately or sell quickly, which could indicate strong local interest in available homes.
With a price-cut share of just 0.2%, it's evident that sellers in Parsons, KS are rarely forced to lower their asking prices, indicating a stable real estate market where properties generally retain their value. This stability, combined with the favorable rental income potential, makes ZIP 67357 an appealing location for small-portfolio investors seeking steady returns.
In conclusion, the combination of a moderate renter share, a competitive market rent, and a higher FMR presents a compelling case for landlords and small-portfolio investors. The low median home value and stable property prices further enhance the investment appeal. For those considering Section 8 participation, the $900 FMR provides a solid basis for determining rental rates, ensuring compliance while maximizing income. Section 8 is viable in ZIP 67357.
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.