Location: Rice County, KS | Metro: Rice County, KS
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,190 |
| 4 Bedrooms | $1,260 |
| 5 Bedrooms | $1,462 |
| 6 Bedrooms | $1,637 |
| 7 Bedrooms | $1,768 |
| 8 Bedrooms | $1,856 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 67524 reveals interesting dynamics between federal housing assistance rates and market rents, providing insights into potential investment opportunities for landlords and small-portfolio investors.
Based on the Fair Market Rent (FMR) for a two-bedroom apartment set at $880 annually for Fiscal Year 2026, the implied gross yield when utilizing Section 8 vouchers would be approximately 1.14%. This calculation is derived by dividing the annual rental income ($880) by the median home value ($77,055).
In contrast, using the Census ACS reported market rent of $716 annually, the implied gross yield without Section 8 assistance drops to about 0.93%. This figure is obtained by dividing the annual market rent ($716) by the median home value ($77,055).
The 31.9% renter density in ZIP 67524 suggests a moderate demand for rental properties. However, the lack of data regarding the days on market (DOM) makes it challenging to assess the speed at which properties can be leased. Given the higher implied gross yield associated with Section 8, it appears more favorable for landlords seeking stable long-term rental income.
The disparity between the two gross yields highlights the financial benefits of participating in the Section 8 program. With an annualized FMR of $880, landlords can expect a slightly higher return compared to the market rent of $716, indicating that Section 8 properties might be more attractive in terms of yield.
Investors should consider these figures carefully, taking into account the additional administrative requirements and potential risks associated with Section 8 properties. While the gross yield is higher, the overall net operating income (NOI) will depend on various factors such as property management costs, vacancy rates, and maintenance expenses.
In summary, for ZIP 67524, the gross yield from a Section 8 property is approximately 1.14%, whereas the gross yield from a non-assisted property is around 0.93%. The higher yield from Section 8 properties makes them a more appealing option for landlords looking to secure a steady stream of rental income, despite the moderate renter population and unknown leasing velocity.
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.