Location: Rice County, KS | Metro: McPherson County, KS
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,220 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 real-estate market in ZIP 67491, Windom, KS, reveals a significant gap between the Federal Market Rent (FMR) set by HUD at $880 for FY 2026 and the actual market rent reported at $532 based on Census ACS data. This gap amounts to $348, or approximately 65.4%, indicating that HUD’s FMR is substantially higher than the local market rate.
In this scenario where FMR exceeds market rent, landlords and small-portfolio investors should view voucher tenants as a yield play. The difference between the FMR and the market rent allows investors to receive a higher subsidy from the government than they would typically charge in the open market, thereby increasing their net rental income.
The broader context of ZIP 67491 includes a population where 28.7% are renters, the median home value stands at $271,120, and the median household income is $60,750. These figures suggest that while there is a notable rental population, the overall economic landscape leans towards homeownership, with rental properties potentially serving as a secondary market or providing affordable housing options.
The higher FMR compared to the market rent means that voucher tenants can provide a reliable source of income, often covering the entire rent and utilities. However, landlords must also consider the administrative aspects of managing Section 8 properties, including regular inspections and compliance with HUD regulations.
In summary, the gap between the FMR and market rent in ZIP 67491 presents an opportunity for investors to leverage government subsidies for increased yields. The local context supports a diverse mix of ownership and rental structures, making it a viable market for those interested in Section 8 investments.
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.