Location: Reno County, KS | Metro: Reno 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 | $670 |
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $960 | $107,793 | 0.89% | C |
| 3BR | $1,220 | $166,219 | 0.73% | D |
U.S. Census Bureau data (2024)
ZIP 67505, located in South Hutchinson, KS, within the Reno County, KS metro area, can serve as a cash-flow anchor within a Section 8 portfolio strategy. The Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $880. This figure represents the maximum rental amount that can be approved under the Section 8 program, providing landlords with a predictable income stream.
The market rent in ZIP 67505 is currently at $602, which is significantly lower than the FMR. This creates a positive spread of $278 per unit, allowing landlords to earn above-market rents while still offering affordable housing options to tenants. The median home value in the area is $143,792, indicating that the overall real estate market is stable and not experiencing rapid appreciation.
ZIP 67505 does not present an opportunity for appreciation plays, as there is no significant percentage increase in home values expected in the near future. Additionally, the data on price-cut shares and days on market (DOM) is not available, suggesting that the market is neither highly competitive nor experiencing a surplus of unsold properties.
However, ZIP 67505 can be a valuable diversifier within a broader investment portfolio. With a renter share of 41.1%, there is a substantial demand for rental properties. The median income of $50,882 aligns well with the affordability of Section 8 rents, ensuring a steady stream of qualified tenants. Landlords should note that the primary industries in the area are agriculture and manufacturing, which could impact the local economy and tenant stability.
In conclusion, ZIP 67505 is best suited as a cash-flow anchor within a Section 8 portfolio due to the favorable spread between the FMR and market rent. This allows investors to secure predictable income without the risk associated with volatile markets or the uncertainty of appreciation plays.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.