Location: Cloud County, KS | Metro: Cloud County, KS
| Unit Size | Monthly FMR |
|---|---|
| Studio | $730 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $990 |
| 3 Bedrooms | $1,190 |
| 4 Bedrooms | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 67417 reveals some key insights into potential investment opportunities. To start, let's consider the Fair Market Rent (FMR) for a two-bedroom apartment, which is set at $900 annually for fiscal year 2026. This figure is based on the metro area average.
In the absence of specific market rent data for ZIP 67417, we can only work with the FMR to derive an initial gross yield. Given that the median home value is also not available, we must rely on the FMR to establish a baseline for our analysis.
If we assume a median home value of $180,000, which is a reasonable estimate for many areas without specific data, the implied gross yield using the FMR would be approximately 5%. This calculation is derived from dividing the annual rental income ($900) by the median home value ($180,000).
However, the lack of precise market rent data means we cannot accurately compare this scenario with actual market conditions. If market rents were higher, say around $1,200 per month for a two-bedroom, the gross yield would increase significantly. For instance, at a monthly rent of $1,200, the annual rental income would be $14,400, leading to a gross yield of 8% if the median home value remains at $180,000.
Given the 29.3% renter density in ZIP 67417, it is clear that there is a substantial demand for rental properties. However, the lack of days-on-market (DOM) data makes it challenging to assess how quickly units might be filled or the competition level landlords face.
The FMR-based gross yield of 5% is likely a conservative estimate, given that it represents the minimum standard set by HUD. In reality, landlords often aim for yields above this level to cover expenses and generate profit. The more optimistic scenario of a 8% gross yield, based on higher market rents, seems more plausible considering the significant renter population and the typical desire for higher returns.
To conclude, while the exact market rent and median home value are not specified, the analysis suggests that landlords in ZIP 67417 should target gross yields above the FMR benchmark of 5%, possibly closer to 8%, to ensure profitability. The high renter density supports this view, indicating strong demand for rental properties in the area.
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.