Location: Sheridan County, KS | Metro: Decatur County, KS
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,220 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP 67635, Dresden, KS, is heavily influenced by the disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $880. However, the market rent for Dresden, KS, is not provided, leading to an assumption that it is higher than the FMR.
The gap between the FMR and the market rent is significant, suggesting that landlords could potentially face a cost of housing voucher tenants below open-market rates. For instance, if the market rent is higher than $880, landlords would need to subsidize the difference to meet the FMR requirements for Section 8 tenants. This could reduce their overall rental income, making it a less attractive proposition compared to open-market tenants paying higher rents.
In Dresden, KS, 5.8% of the population are renters, and the median home value stands at $123,400. The median household income is $58,125, indicating a middle-income earning profile. Given that the FMR is lower than what might be expected from market rents, landlords and small-portfolio investors should carefully consider the financial implications of accepting Section 8 tenants.
If the FMR were to exceed the market rent, it would present an opportunity for landlords to increase their yields through Section 8 vouchers. However, since the market rent is likely higher, the focus should be on understanding the cost structure associated with housing voucher tenants below the open-market rates.
Landlords and investors must weigh the benefits of stable, government-backed rental payments against the potential financial shortfall. In Dresden, KS, where the median home value and median income are both above state averages, this consideration is particularly important. It highlights the necessity of conducting thorough due diligence before committing to Section 8 participation.
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.