Location: Ottawa County, KS | Metro: Lincoln 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 | $710 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,420 |
| 5 Bedrooms | $1,647 |
| 6 Bedrooms | $1,845 |
| 7 Bedrooms | $1,993 |
| 8 Bedrooms | $2,093 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $960 | $114,685 | 0.84% | C |
| 3BR | $1,280 | $180,857 | 0.71% | D |
| 4BR | $1,420 | $238,468 | 0.6% | F |
U.S. Census Bureau data (2024)
The analysis for the Section 8 program in ZIP code 67467, located in Minneapolis, Kansas, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area for fiscal year 2026 is set at $890, whereas the Census ACS reports the market rent at $690. This creates a gap of $200 per month, which is approximately 22.5% of the FMR.
Given that the FMR exceeds the market rent, landlords can leverage this situation to achieve higher yields on their investments. By accepting Section 8 vouchers, landlords can charge up to the FMR rate of $890, thereby increasing their rental income by $200 above the typical market rate of $690. This makes it particularly attractive for landlords and small-portfolio investors looking to maximize returns in a relatively low-rent market.
In the context of Minneapolis, KS, where 29.8% of residents are renters and the median home value is $159,621, the median income stands at $61,750. These figures indicate that while there is a decent population of renters, the income levels suggest that many may rely on assistance such as Section 8 vouchers to afford housing. As a result, landlords who participate in the Section 8 program can expect a stable tenant base that is less likely to be affected by economic fluctuations, given the government's role in subsidizing the rent.
However, it is important to note that accepting Section 8 tenants comes with certain responsibilities and potential costs. Landlords must ensure that their properties meet HUD standards, which can require additional maintenance and upgrades. Additionally, the process of renting to voucher holders involves paperwork and compliance checks, which may impact the overall management costs. Despite these considerations, the financial incentive of charging closer to the FMR of $890, rather than the lower market rent of $690, provides a compelling reason for landlords to engage with the Section 8 program.
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.