Section 8 Fair Market Rent (FMR) for ZIP 67701 - 2027

Location: Thomas County, KS | Metro: Rawlins County, KS

Investment Score for ZIP 67701

C
Monthly Rent (2BR)
$960
Median Price (2BR)
$112,273
1% Rule
0.86%
Annual Yield
10.26%

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

Unit Size Monthly FMR
Studio$710
1 Bedroom$760
2 Bedrooms$960
3 Bedrooms$1,150
4 Bedrooms$1,420
5 Bedrooms$1,647
6 Bedrooms$1,845
7 Bedrooms$1,993
8 Bedrooms$2,093

Investment Analysis by Bedroom Size

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

Bedrooms Monthly FMR Median Price 1% Rule Grade
2BR $960 $112,273 0.86% C
3BR $1,150 $175,094 0.66% D
4BR $1,420 $214,565 0.66% D
5BR $1,647 $271,839 0.61% D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
6,134
Median Household Income
$70,250
Housing Units
2,829
Renter Percentage
28.3%
Occupancy Rate
87.6%
Renter Occupied
701

The Fair Market Rent (FMR) for ZIP code 67701, which includes Colby, Kansas, is set at $880 per month for the fiscal year 2026. This figure represents the payment standard under the Section 8 housing choice voucher program, meaning that if you participate in this program, the government will pay up to $880 per month for a two-bedroom unit. However, this does not represent the actual rent you can charge your tenants; it's the maximum amount that the Housing Authority will contribute towards the rent.

To put this into context, the average rent for a two-bedroom apartment in Colby, according to the latest Census American Community Survey (ACS), is approximately $750. This suggests that landlords participating in Section 8 could potentially face a lower income compared to market rates. However, the demand for rentals in Colby is significant, with 28.3% of households being renters. This indicates a steady need for affordable housing options, making Section 8 a reliable source of income despite the capped payments.

If you're looking to acquire a property in this area, the median home value in Colby is around $181,763. This figure gives you an idea of the typical investment required to enter the market. Given the 28.3% renter share, there's a reasonable chance that once you have a property, it will be occupied by a Section 8 tenant, ensuring a stable income stream.

Before deciding to participate in Section 8 with your first rental property in Colby, ensure that your property meets the Housing Quality Standards (HQS). These standards are designed to ensure that properties are safe and decent for tenants. The HQS inspection is a requirement for all Section 8 properties and must be passed before a tenant can move in. It covers a range of issues including structural integrity, heating, plumbing, and electrical systems.

In summary, the $880 FMR under Section 8 is a payment limit, not your rent rate. With an average local rent of $750 and a substantial 28.3% of households renting, there's a solid demand for affordable housing. A median home value of $181,763 sets the baseline for investment costs. To proceed, confirm your property passes the necessary HQS inspection.

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.