Location: Rice County, KS | Metro: Reno County, KS
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,200 |
| 4 Bedrooms | $1,270 |
| 5 Bedrooms | $1,473 |
| 6 Bedrooms | $1,650 |
| 7 Bedrooms | $1,782 |
| 8 Bedrooms | $1,871 |
U.S. Census Bureau data (2024)
To understand the economics of Section 8 housing in ZIP code 67512, it's crucial to know the SAFMR (Standard Area Fair Market Rent) for a two-bedroom unit, which is set at $880 per month for fiscal year 2026. This figure is specific to this ZIP code, reflecting the local rental market conditions. However, it's noted that the local market rent is currently unavailable, which makes direct comparisons challenging.
The SAFMR serves as the benchmark for determining the maximum rent that can be charged to tenants participating in the Section 8 Housing Choice Voucher program. Landlords must ensure their rents do not exceed this amount to participate in the program.
A voucher payment consists of two parts: the tenant contribution and the subsidy from the government. The tenant is required to pay approximately 30% of their adjusted income towards rent. For simplicity, let's assume an average adjusted income of $1,500 per month for a tenant in this area. This would mean the tenant contributes $450 towards rent ($1,500 x 0.30).
The remaining balance is covered by the government subsidy, which in this case would be $430 ($880 - $450). It's important to note that this calculation assumes the tenant's adjusted income and does not include any utility allowances. Utility allowances can vary but typically add a small amount to the total reimbursement, potentially increasing the subsidy slightly above $430.
The SAFMR being specific to ZIP 67512 means that the rate is tailored to the economic conditions of this particular area, rather than applying uniformly across a broader metro or county region. This specificity helps ensure that the reimbursement rates reflect the actual cost of living and renting in ZIP 67512.
Given the SAFMR and assuming the average tenant contribution as calculated, landlords can expect a reimbursement gap or surplus based on the difference between the SAFMR and the actual market rent. Since the local market rent is not available, we cannot definitively state whether there will be a surplus or a shortfall. However, if the market rent were higher than $880, landlords would face a shortfall, meaning they would receive less than the market rate for their units. Conversely, if the market rent were lower, landlords would benefit from a surplus, receiving more than the typical market rent.
In conclusion, the economics of Section 8 in ZIP 67512 hinge on the SAFMR of $880 for a two-bedroom unit. With the tenant paying around $450, the government covers the rest, creating a reimbursement structure that is specific to the ZIP code's conditions. Without exact local market rent data, the potential gap or surplus remains uncertain, but it directly correlates with the discrepancy between the SAFMR and the actual rental prices in the area.
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.