Location: Smith County, KS | Metro: Osborne County, KS
| Unit Size | Monthly FMR |
|---|---|
| Studio | $740 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,490 |
| 5 Bedrooms | $1,728 |
| 6 Bedrooms | $1,935 |
| 7 Bedrooms | $2,090 |
| 8 Bedrooms | $2,195 |
U.S. Census Bureau data (2024)
The Section 8 analysis for ZIP code 67474 focuses on the disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $920. However, the current market rent for the area is listed as N/A, indicating that there is insufficient data to provide an accurate comparison.
Given the lack of specific market rent figures, it's critical to understand how the FMR can influence investment decisions in this region. With an FMR of $920, landlords should be aware that voucher tenants will only cover this amount. If the market rent is higher than the FMR, landlords could face a significant shortfall in covering their costs, which can range from maintenance and utilities to mortgage payments. This scenario would suggest that accepting Section 8 tenants might result in lower yields compared to renting at market rates.
In the broader context of ZIP 67474, where only 3.4% of residents are renters, the demand for rental properties is relatively low. Additionally, the median income stands at $81,250, which could indicate that homeownership is more prevalent and affordable for many residents. Despite these factors, the presence of Section 8 voucher holders can still provide a steady stream of tenants willing to pay the government-set rate. Therefore, landlords and small-portfolio investors must weigh the benefits of guaranteed occupancy against the potential financial constraints imposed by the lower FMR.
If the FMR exceeds the market rent, then accepting Section 8 tenants becomes a more attractive option. In such a case, voucher holders would effectively subsidize the landlord's income, potentially leading to higher yields than renting to non-voucher tenants who might struggle to meet even the lower market rent. This situation would make Section 8 properties a strong play for maximizing returns in a challenging rental market.
However, without a precise market rent figure, the exact gap in dollars and percentage cannot be calculated. Landlords should consider conducting a local market survey to determine if the FMR is indeed above or below the prevailing market rents. This will help them make informed decisions about whether to participate in the Section 8 program.
Data Sources: FMR data from HUD (2027). 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.