Location: Ottawa County, KS | Metro: Manhattan, KS HUD Metro FMR Area
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 | $830 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,480 |
| 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 |
|---|---|---|---|---|
| 2BR | $1,130 | $103,546 | 1.09% | B |
| 3BR | $1,480 | $182,396 | 0.81% | C |
| 4BR | $1,620 | $219,516 | 0.74% | D |
| 5BR | $1,879 | $281,270 | 0.67% | D |
U.S. Census Bureau data (2024)
The rent math in ZIP 67432, which encompasses Clay Center, KS, and the Ottawa County, KS metro area, is favorable but requires careful consideration. The Fair Market Rent (FMR) for the zip code in fiscal year 2024 is set at $1020, whereas the market rent according to Census ACS data stands at $987. This indicates that landlords can charge slightly above the market average without exceeding the affordability threshold for low-income renters.
Acquisition of properties in this area is relatively affordable. The median home value is $158,768, which is a reasonable investment point for small-portfolio investors. However, the lack of data on days on market (DOM) and the fact that only 0.2% of homes have experienced price cuts suggest a stable market with limited opportunities for acquiring distressed properties at a discount.
Tenant demand is present but moderate. With a total population of 5,607 and a renter share of 25.7%, there are approximately 1,445 potential renters in the area. This figure supports a modest rental market, but it's important to note that the small population size limits the overall demand.
Verdict: The rent math in ZIP 67432 works well, with the FMR providing a buffer over market rents. Property acquisition is affordable given the median home value, though opportunities for discounted purchases are scarce. Tenant demand is sufficient for a small portfolio, but the limited population size means that the market will not support a large number of rental units. For landlords and small-portfolio investors, this area offers a stable and manageable opportunity for rental investments.
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.