Location: Ellsworth 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 | $840 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,680 |
| 5 Bedrooms | $1,949 |
| 6 Bedrooms | $2,183 |
| 7 Bedrooms | $2,358 |
| 8 Bedrooms | $2,476 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,140 | $81,543 | 1.4% | A |
| 3BR | $1,400 | $159,435 | 0.88% | C |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 67454 in Kansas reveals some interesting insights when comparing the Federal Market Rent (FMR) for a two-bedroom unit at $980 annually against the median market rent of $744 per month, based on Census ACS data. The median home value in this area is $106,982.
To calculate the implied gross yield for both scenarios, we first need to annualize the market rent. The annualized market rent for a two-bedroom unit is $744 multiplied by 12 months, equating to $8,928 per year. Using the median home value of $106,982, the implied gross yield based on market rent is approximately 8.35%. This is calculated by dividing the annualized market rent ($8,928) by the median home value ($106,982).
In contrast, the Section 8 FMR for a two-bedroom unit is set at $980 monthly, or $11,760 annually. When we apply this figure to the median home value, the implied gross yield for a Section 8 rental property in ZIP 67454 is about 11.00%. This calculation is derived by dividing the annualized FMR ($11,760) by the median home value ($106,982).
The higher gross yield from the Section 8 scenario suggests that it could be more profitable for landlords and small-portfolio investors in this area. However, the reality of the situation must also consider the 8.0% renter density, which indicates that only a small portion of the population is actively seeking rental properties. Additionally, the lack of data on the days on market (DOM) means that we cannot accurately predict how quickly a Section 8 property might be rented out compared to a market-rate property.
Given these factors, while the Section 8 scenario offers a higher gross yield, the lower renter density and uncertainty around the time it takes to secure a tenant may make the market-rate scenario more realistic for most investors. Market conditions can fluctuate, and the stability of rental income under the Section 8 program might offset the higher potential returns. Investors should weigh these considerations carefully when deciding between Section 8 and market-rate rentals in ZIP 67454.
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.