Section 8 Fair Market Rent (FMR) for ZIP 67445 - 2027

Location: Ottawa County, KS | Metro: Cloud County, KS

Investment Score for ZIP 67445

N/A

Monthly Rent (2BR)

$980

Median Price (2BR)

$N/A

1% Rule

Annual Yield

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	$720
1 Bedroom	$770
2 Bedrooms	$980
3 Bedrooms	$1,270
4 Bedrooms	$1,450
5 Bedrooms	$1,682
6 Bedrooms	$1,884
7 Bedrooms	$2,035
8 Bedrooms	$2,137

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
3BR	$1,270	$125,699	1.01%	B

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

565

Median Household Income

$46,250

Housing Units

362

Renter Percentage

15.2%

Occupancy Rate

70.7%

Renter Occupied

To determine if you should buy in ZIP code 67445 for Section 8 purposes, follow this decision tree:

Step 1: Debt Service Coverage Ratio (DSCR)

The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is $900. For a property valued at $81,136, calculate your DSCR based on the FMR. If the FMR of $900 can cover your mortgage payments and other expenses, then proceed. Otherwise, do not invest.

Step 2: Market Rent Comparison

Compare the FMR of $900 with the market rent of $752 (as per Census ACS data). If the market rent is below the FMR, then there is an opportunity to charge higher rents under Section 8, making the investment more attractive. If the market rent is equal to or above the FMR, then the potential for higher rents diminishes, and you must weigh the benefits against the risks.

Step 3: Demand Assessment

ZIP 67445 has a rental rate of 15.2%. The Days on Market (DOM) is listed as N/A, which means there is insufficient data to make a judgment about how quickly properties are rented. This ambiguity requires further investigation into local rental trends and vacancy rates.

If the market rent is below the FMR and there is sufficient demand indicated by the rental rate, then the answer is Yes. You can expect to cover your costs and potentially generate a profit due to the higher allowable rent under Section 8.
If the market rent is at or above the FMR but the rental rate indicates strong demand, the decision becomes It Depends. Consider the long-term stability of the tenant base and any potential for increased market rents.
If the market rent is at or above the FMR and there is weak demand, the answer is No. There is little room for higher rents and the risk of prolonged vacancies could outweigh the benefits of Section 8 participation.

Note that the N/A for DOM complicates the demand assessment. It's crucial to gather additional local market data to fill this gap before making a final decision.

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.