Location: Norton County, KS | Metro: Decatur County, KS
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,450 |
| 5 Bedrooms | $1,682 |
| 6 Bedrooms | $1,884 |
| 7 Bedrooms | $2,035 |
| 8 Bedrooms | $2,137 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 67653 provides a detailed look at potential investment opportunities for landlords and small-portfolio investors. The Federal Market Rent (FMR) for a 2-bedroom unit in the metropolitan area for fiscal year 2026 is set at $880 per month. This figure annualizes to $10,560 per year. Given the median home value of $99,818 in this ZIP code, the implied gross yield based on the FMR would be approximately 10.6%. This calculation is derived by dividing the annualized FMR by the median home value.
However, the market rent for the area is listed as N/A, indicating that there may not be sufficient data to determine an accurate market rent rate. In the absence of market rent data, it's challenging to provide a precise gross yield comparison. Yet, if we assume the market rent aligns closely with the FMR, the gross yield would remain around 10.6%. If the market rent were higher, the gross yield would also increase accordingly.
The renter density in ZIP 67653 is estimated at 7.5%, suggesting that a relatively small portion of the population relies on rental assistance programs such as Section 8. Additionally, the days-on-market (DOM) is listed as N/A, which implies that there might not be enough data to assess how quickly properties are typically leased in this area. This lack of information can affect the reliability of the gross yield estimate based solely on the FMR.
Considering these factors, the gross yield of 10.6% based on the FMR is a conservative estimate. It assumes that the property will be rented out at the FMR rate and that the occupancy will be stable. However, without specific market rent data, it's difficult to ascertain whether this yield is reflective of the true market conditions. For investors, understanding the local rental market beyond just the FMR is crucial to making informed decisions about potential returns.
In conclusion, while the FMR-based gross yield of 10.6% offers a starting point for analysis, the actual market conditions could result in a different yield. Landlords and small-portfolio investors should seek additional local market insights to refine their investment strategy in ZIP 67653.
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.