Section 8 Fair Market Rent (FMR) for ZIP 67401 - 2027

Investment Score for ZIP 67401

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$860
1 Bedroom	$860
2 Bedrooms	$1,130
3 Bedrooms	$1,430
4 Bedrooms	$1,490
5 Bedrooms	$1,728
6 Bedrooms	$1,935
7 Bedrooms	$2,090
8 Bedrooms	$2,195

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$860	$78,975	1.09%	B
2BR	$1,130	$122,657	0.92%	C
3BR	$1,430	$194,841	0.73%	D
4BR	$1,490	$265,511	0.56%	F
5BR	$1,728	$353,952	0.49%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 67401 (Salina, KS) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 67401 is set by HUD for the year 2026. The FMRs for different bedroom sizes are as follows: - 0BR: $780 - 1BR: $790 - 2BR: $1030 (19.1% of median income) - 3BR: $1250 - 4BR: $1360 These figures represent the maximum amount that a Section 8 voucher holder can pay towards rent. However, comparing these FMRs to actual rents provides insight into the dynamics of the rental market. For instance, the Zillow median price for a 2BR home is $116,211, which suggests that the property values are relatively low. This could indicate that rental rates might be lower than the FMRs, but it is important to consider the price-to-FMR ratio, which is 9.4x for a 2BR unit. This high ratio implies that actual rents are significantly higher than what the FMR suggests, creating a challenging situation for voucher holders who may find it difficult to secure housing within their budget. #### Affordability & Renter Profile ZIP code 67401 has a population of 50,217, with 33.9% of households being renters. The occupancy rate stands at 93.7%, indicating a tight rental market where demand is likely close to supply. Given the median household income of $64,606, the affordability of housing is a critical issue. A 2BR unit at the FMR of $1030 represents 19.1% of the median income, which is a significant portion of monthly earnings. This suggests that renters, particularly those relying on Section 8 vouchers, face considerable financial pressure to afford housing. The high price-to-FMR ratio of 9.4x for a 2BR unit further exacerbates the affordability challenge. It indicates that landlords are charging well above the FMR, making it difficult for voucher holders to find suitable accommodation. The median income figure also highlights that many residents may struggle to cover additional costs beyond rent, such as utilities and maintenance fees, which are often not included in the FMR calculations. #### Investor Angle From an investor perspective, the ZIP code 67401 presents a mixed picture when considering cash flow and investment grade. The FMRs provide a benchmark for rental rates, but the actual rents charged are much higher, as indicated by the price-to-FMR ratio. For a 2BR unit, the FMR is $1030, while the actual median rent is approximately $9750 per month ($1030 * 9.4). This suggests that investors who can charge market rates will likely see positive cash flow, as the rental income far exceeds the FMR. However, the high price-to-FMR ratio also means that there is a risk of overpricing, which could lead to vacancies if potential tenants cannot afford the rents. Additionally, the tight market with a high occupancy rate might make it difficult to find properties to purchase at reasonable prices. Investors should carefully evaluate the local rental market and consider the potential for downward pressure on rents due to competition from other landlords. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units like 0BR or 1BR apartments. These units have FMRs of $780 and $790 respectively, which are more manageable compared to larger units. For example, a 1BR unit at the FMR would cost $790, representing only 15.4% of the median income. This makes it easier for voucher holders to afford and reduces the risk of vacancy. 2. **Consider Utility Inclusions**: Since the FMR does not include utilities, investors might consider offering units with utilities included to attract voucher holders. This would reduce the overall cost burden on tenants and potentially increase occupancy rates. For instance, including utilities in a 2BR unit could effectively lower the total monthly cost to around $1030, aligning better with the FMR. 3. **Evaluate Property Values**: The Zillow median price for a 2BR home is $116,211, which is quite low. This could present opportunities for investors to acquire properties at below-market values, especially if they plan to renovate and improve them. However, investors should be cautious about overpaying for properties in a market where rents are already high relative to the FMR. #### Bottom Line For Section 8-focused investors, the ZIP code 67401 presents a challenging but potentially rewarding market. The high price-to-FMR ratio indicates that actual rents are significantly higher than the FMR, which could lead to positive cash flow for investors who can charge market rates. However, the tight market and high occupancy rate suggest that competition is fierce, and there is a risk of overpricing leading to vacancies. Given these factors, the recommendation for investors is to **Hold**. Focus on acquiring smaller units or properties with utility inclusions to better align with the FMR and attract voucher holders. Avoid overpaying for properties and ensure that the rental rates remain competitive within the local market. This approach balances the potential for positive cash flow with the need to maintain occupancy rates among a financially constrained tenant base.

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.