Section 8 Fair Market Rent (FMR) for ZIP 67579 - 2027

Investment Score for ZIP 67579

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

A landlord considering investing in ZIP code 67579 (Sterling, KS) for Section 8 properties must follow a structured decision-making process. Here’s how to proceed:

Step 1: Debt Service Coverage Ratio (DSCR)

• Yes: If the Fair Market Rent (FMR) of $880 per month can cover the debt service on a property valued at $167,291, then it is financially viable to invest in this area. To determine this, calculate the monthly mortgage payment based on current interest rates and compare it against the FMR. If the FMR comfortably exceeds the mortgage payment, proceed to Step 2.
• No: If the FMR of $880 cannot clear the debt service on a property costing $167,291, then purchasing in this ZIP code is not advisable for Section 8 purposes. The investment would not be sustainable without additional income sources.
• It Depends: This scenario is unlikely given the provided data. However, if there are other costs or subsidies that affect the equation, reassess the DSCR before making a decision.

Step 2: Market Rent Comparison

• Yes: If the market rent of $693 is significantly below the FMR of $880, it indicates a potential opportunity to increase rental income by participating in the Section 8 program. This gap suggests that the government subsidy could make up the difference between what the market allows and the FMR, leading to higher overall profitability.
• No: If the market rent is close to or exceeds the FMR, landlords may find it difficult to justify the investment in Section 8 properties. The primary benefit of Section 8 is the guaranteed rent payment that covers the FMR, but if the market already pays close to or above this amount, the added value of the program diminishes.
• It Depends: When market rents hover around the FMR, the decision hinges on the stability of the local housing market and the likelihood of future rent increases. Analyze trends in the area to predict future market conditions.

Step 3: Rental Demand Analysis

• Yes: With 19.4% of the population being renters and an unknown number of days on the market (DOM), landlords need to evaluate the local demand. If the DOM is low, indicating quick turnover, and there is a high concentration of eligible Section 8 tenants, the investment in Sterling, KS, is favorable. Quick occupancy ensures steady cash flow.
• No: If the DOM is high, suggesting slow turnover, or there is a low concentration of Section 8 tenants relative to the rental demand, the investment may not be worthwhile. High vacancy rates can lead to financial strain.
• It Depends: Without specific DOM data, landlords must rely on qualitative assessments of the local rental market. Engage with local real estate agents or review online listings to gauge the competition and demand for rental properties.

In summary, the viability of purchasing a Section 8 property in ZIP 67579 (Sterling, KS) depends on the ability of the FMR to cover debt service, the relationship between market rent and FMR, and the strength of rental demand. Each step narrows down the factors influencing the final decision, providing a clear path forward based on the data available.

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.