Location: Saline County, KS | Metro: Ellsworth 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 | $880 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,460 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,460 | $245,633 | 0.59% | F |
U.S. Census Bureau data (2024)
The ZIP code 67425 presents several challenges for landlords considering Section 8 investments. Tenant turnover is a significant risk, with the market rent at $1,071 compared to the Fair Market Rent (FMR) of $1,000 for fiscal year 2026 in the metro area. This discrepancy suggests that tenants might struggle to afford the market rent, leading to higher turnover rates and increased costs associated with finding new tenants.
Vacancy exposure is another concern, though data on days on market (DOM) is currently unavailable. In areas where rental demand is not robust, longer periods of vacancy can be expected, which would negatively impact cash flow and profitability. The typical home value in ZIP 67425 is $204,903, while the median income stands at $95,729. These figures indicate that homeownership might be out of reach for many residents, potentially increasing the demand for rental properties, but also highlighting the risk of deferred maintenance due to lower income levels among tenants.
Despite these risks, the ZIP code has an 18.1% renter share, which is relatively high. High renter density typically correlates with higher demand for housing assistance vouchers, making it more likely that voucher holders will seek out properties in this area. This demand can help mitigate some of the financial risks associated with tenant turnover and vacancy exposure.
In summary, the risks include potential tenant turnover due to the gap between market rent and FMR, possible vacancy exposure due to uncertain rental demand, and the risk of deferred maintenance due to lower median incomes. However, the high renter share increases the likelihood of voucher demand, which can offset some of these concerns.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.