Location: Smith County, KS | Metro: Phillips County, KS
| Unit Size | Monthly FMR |
|---|---|
| Studio | $820 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,640 |
| 5 Bedrooms | $1,902 |
| 6 Bedrooms | $2,130 |
| 7 Bedrooms | $2,300 |
| 8 Bedrooms | $2,415 |
U.S. Census Bureau data (2024)
The analysis for the Section 8 program in ZIP code 67644 centers around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. As of fiscal year 2026, the FMR stands at $1,010. However, the current market rent data is unavailable, which complicates a direct comparison. Despite this, we can still provide insight based on the available information.
In the scenario where the FMR exceeds the market rent, the gap would incentivize landlords to participate in the Section 8 program. This situation transforms rental properties into a yield play, ensuring a steady stream of income through government-subsidized vouchers. The voucher tenants pay a portion of their income towards rent, with the remainder covered by the Housing Choice Voucher program. For instance, if the market rent is lower than $1,010, the landlord receives the difference from the government, thus securing a higher rental income than what the open market offers.
Conversely, if the FMR is less than the market rent, landlords face the decision of renting below market rates to voucher holders. This could mean accepting a lower profit margin per unit compared to non-subsidized tenants. The cost of housing voucher tenants below open-market rates is the opportunity cost of potentially renting out units at higher rates to those who do not require subsidies. This scenario might be less favorable for landlords looking to maximize immediate cash flow.
To anchor this analysis, consider the broader context of ZIP 67644. With 20.5% of residents being renters and a median household income of $52,708, the demand for affordable housing is significant. The lack of median home value data suggests that homeownership may not be the primary focus in this area, making rental properties, especially those participating in the Section 8 program, crucial for meeting the housing needs of low-income families.
Landlords and small-portfolio investors must weigh the benefits of guaranteed income against the potential for higher short-term profits. Participation in the Section 8 program can provide financial stability and access to a reliable tenant pool, but it also means adhering to certain regulations and possibly receiving lower rent than the market rate would allow.
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.