Location: Rice County, KS | Metro: Wichita, KS HUD Metro FMR Area
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 | $790 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,080 | $187,223 | 0.58% | F |
| 3BR | $1,380 | $252,381 | 0.55% | F |
| 4BR | $1,530 | $326,008 | 0.47% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking at ZIP 67546 in Inman, Kansas, might raise several valid concerns regarding the feasibility of investing in the area under the Section 8 program. Here, we address these concerns with the available data.
Objection 1: Will the Fair Market Rent (FMR) of $910 for zip code FY 2024 cover the mortgage on a $257,683 home?
The FMR of $910 does not automatically guarantee that it will cover the mortgage on a $257,683 home. The monthly mortgage payment depends on the interest rate, loan term, and down payment amount. For instance, with a typical 30-year fixed-rate mortgage at an average interest rate of 5%, and assuming a 20% down payment, the monthly mortgage payment would be approximately $1,028. This exceeds the FMR, indicating that the rental income alone might not suffice. However, investors should consider additional factors such as property taxes, insurance, maintenance costs, and potential appreciation in property value over time.
Objection 2: Is there enough renter demand at 17.6%?
The 17.6% figure represents the percentage of households renting in ZIP 67546. While this number is relatively low compared to urban areas, it still indicates a demand for rental properties. A lower percentage of renters could suggest that competition among landlords might be less intense, but it also means that the pool of potential tenants is smaller. To mitigate risk, investors should conduct thorough market research to understand local demographics and housing needs. Additionally, diversifying investment portfolios across multiple ZIP codes can help balance out the risks associated with a lower rental demand.
Objection 3: Will vouchers keep pace with $964 market rents?
The current market rent of $964 is higher than the FMR, which poses a challenge for landlords participating in the Section 8 program. Vouchers are typically capped at the FMR level, meaning that landlords might need to accept a lower rent than what the market allows. This discrepancy could be addressed by seeking non-voucher tenants willing to pay the market rate or by applying for the Higher Payment Program, which allows landlords to receive payments above the FMR if certain conditions are met. However, the data does not provide insights into how well the voucher amounts adjust over time, leaving some uncertainty about long-term financial viability.
In summary, while the data presents challenges for landlords in ZIP 67546, particularly around covering mortgage payments and keeping pace with market rents, it also highlights opportunities in a less competitive rental market. Investors must carefully weigh these factors and consider supplementary strategies to ensure profitability.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.