Location: Trego County, KS | Metro: Graham County, KS
| Unit Size | Monthly FMR |
|---|---|
| Studio | $730 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $990 |
| 3 Bedrooms | $1,230 |
| 4 Bedrooms | $1,390 |
| 5 Bedrooms | $1,612 |
| 6 Bedrooms | $1,805 |
| 7 Bedrooms | $1,949 |
| 8 Bedrooms | $2,046 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 67631 provides a glimpse into the potential returns for landlords and small-portfolio investors interested in Section 8 properties. Given the Fair Market Rent (FMR) for a two-bedroom apartment is $890 annually, we can derive a cap-rate based on the median home value. However, the median home value for this ZIP code is not available, making it challenging to calculate an exact cap-rate.
To illustrate the cap-rate calculation, let's assume a hypothetical median home value. For instance, if the median home value were $200,000, the annualized FMR of $890 would imply a gross yield of approximately 0.45%. This is calculated by dividing the annual rental income ($890) by the property value ($200,000).
In the absence of specific market rent data, we cannot provide a direct comparison between the FMR-based scenario and the market rent-based scenario. However, typically, market rents are higher than FMRs, which would suggest a potentially higher gross yield for market rent scenarios.
Given the 5.7% renter density in ZIP 67631, it's important to note that the demand for Section 8 housing might be lower compared to areas with higher renter densities. The Days on Market (DOM) figure is also not available, which means we cannot assess how quickly properties are rented out. A longer DOM would decrease the effective gross yield due to extended vacancy periods.
The FMR-based gross yield of 0.45% is likely the lower bound for investment returns in this ZIP code. In reality, market conditions and the actual median home value could significantly alter this figure. Landlords and investors should consider these factors when evaluating the potential profitability of Section 8 properties in ZIP 67631.
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.