Location: Gove County, KS | Metro: Gove County, KS
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 67736 centers around the discrepancy between the Fair Market Rent (FMR) and the actual market rents. For fiscal year 2026, the FMR stands at $880. However, the current market rent data is unavailable, which complicates a direct comparison. Given the limited data, we can still provide insights into the implications of the FMR figure.
In ZIP 67736, only 4.9% of the population are renters, indicating a low demand for rental properties. The median household income is $55,972, suggesting that residents have varying levels of financial stability but are generally not in a high-income bracket. This context is crucial for understanding how the Section 8 program might affect landlords and small-portfolio investors.
If the FMR of $880 is higher than the prevailing market rent, it makes the area a potential yield play for landlords who accept Section 8 vouchers. Voucher tenants would be able to afford rents up to $880, which could be significantly above what the local market currently offers. This scenario would allow landlords to potentially charge more than they might otherwise receive from non-voucher tenants, thereby increasing their rental income and property yield.
Conversely, if the market rent is higher than the FMR, landlords accepting Section 8 vouchers would be renting their properties below the open-market rate. The cost of this strategy lies in the difference between the FMR and the market rent. For example, if the market rent were $1,000, landlords would be leaving $120 per unit on the table each month, a 13.6% discount compared to the market rate. This could impact profitability and cash flow, especially for small-portfolio investors who rely on rental income for significant returns.
Given the lack of specific market rent data, it's imperative for investors to research local trends and consult with local real estate professionals to understand the actual market conditions. This will help them decide whether accepting Section 8 vouchers aligns with their investment goals and risk tolerance.
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.