Location: Sheridan County, KS | Metro: Graham County, KS
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,160 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $970 | $125,742 | 0.77% | D |
| 3BR | $1,160 | $220,291 | 0.53% | F |
| 4BR | $1,620 | $274,425 | 0.59% | F |
| 5BR | $1,879 | $334,176 | 0.56% | F |
U.S. Census Bureau data (2024)
Hoxie, Kansas, located in ZIP code 67740, is a small town with a population of 1,592 residents. It has a relatively low percentage of renters at 25.2%, indicating that it's primarily a community where homeownership is prevalent, with a median home value of $227,032. The median household income in Hoxie is $75,417, suggesting a middle-class demographic with a modest economic base.
The rental market in Hoxie reflects the town's smaller size and lower demand. According to the Census ACS, the average market rent stands at $691 per month, which is notably below the Fair Market Rent (FMR) of $890 set for the metro area for fiscal year 2026. This discrepancy between the FMR and the actual market rent implies that there is an opportunity for landlords who can offer housing within the FMR range to attract tenants eligible for Section 8 vouchers.
Given these conditions, Hoxie might be more suitable for a hands-on value-add buyer rather than a hands-off operator. The lower market rents indicate that there is room to improve property values and rental rates through active management and investment. A hands-on approach would allow an investor to enhance the quality of their properties to meet the FMR, thereby increasing the likelihood of attracting Section 8 tenants and improving cash flow. Additionally, the relatively low number of renters suggests that there is competition for rental units, making it necessary to differentiate one’s offerings to succeed in the local market.
In conclusion, while Hoxie presents a challenging environment due to its limited rental market, it also offers opportunities for those willing to take a proactive role in managing and improving their properties. The potential for leveraging the difference between the FMR and the actual market rent makes it an attractive location for investors looking to capitalize on the Section 8 program, but they must be prepared to invest time and resources into their properties to maximize returns.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.