Location: Edwards County, KS | Metro: Edwards 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 | $760 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,380 | $133,405 | 1.03% | B |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $910 for ZIP code 67552, projected for metro FY 2026, will sufficiently cover the mortgage on a home valued at $101,063. To address this concern, it's important to consider that the FMR represents the maximum amount that a low-income family should pay for housing, typically covering about 30% of their adjusted income. A mortgage payment on a home priced at $101,063, assuming a 30-year fixed-rate loan at an average interest rate, would likely be higher than $910. However, the value of the home suggests it is below the median price, which could indicate lower property taxes and insurance costs, reducing overall expenses.
The second objection relates to the renter demand in ZIP 67552, which stands at 17.8%. This percentage may seem low to some investors, but it's crucial to understand that even a smaller share of the population can represent a significant number of potential renters. Moreover, the demand for rental properties in this area should be considered alongside the supply. If the supply is also low, the existing demand could still support healthy occupancy rates. Additionally, the demographic makeup of the area, including employment trends and household formation, plays a critical role in sustaining rental demand.
Lastly, an investor might wonder if the Housing Choice Voucher program will keep pace with the market rents, currently estimated at $675. The voucher program aims to cover about 30% of the area median income (AMI), which means it adjusts based on local economic conditions. However, the availability and allocation of vouchers can vary significantly. While the FMR for ZIP 67552 is set at $910, which is above the current market rent, the actual amount paid through vouchers can lag behind market rates due to funding limitations and administrative processes. Therefore, relying solely on vouchers to match market rents might not always be feasible.
To summarize, while the FMR of $910 may not fully cover the mortgage on a $101,063 home, it can still contribute to overall profitability when combined with other income sources. The 17.8% renter demand, though seemingly modest, can be sufficient given the right market conditions and supply dynamics. Lastly, the voucher program is designed to adjust with the market but may not always meet expectations due to external factors.
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.