Location: Rawlins County, KS | Metro: Decatur 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 | $730 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,420 |
| 5 Bedrooms | $1,647 |
| 6 Bedrooms | $1,845 |
| 7 Bedrooms | $1,993 |
| 8 Bedrooms | $2,093 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $960 | $60,312 | 1.59% | A+ |
| 3BR | $1,330 | $123,884 | 1.07% | B |
| 4BR | $1,420 | $161,409 | 0.88% | C |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 67749 in Oberlin, KS, reveals some interesting dynamics between government-subsidized rental income and market rents. To understand the implications, we need to look at the Fair Market Rent (FMR) and the actual market rent for a two-bedroom property.
Based on the Fiscal Year 2026 data, the FMR for a two-bedroom apartment in the Oberlin metro area is set at $880 per month. This translates into an annual rental income of $10,560. When compared to the median home value of $111,840, the implied gross yield from Section 8 participation is approximately 9.44%. The calculation is straightforward: $10,560 divided by $111,840 equals 0.0944, or 9.44%.
On the other hand, the market rent for a similar two-bedroom property, according to the Census ACS, stands at $676 per month. This equates to an annual rental income of $8,112. Using the same median home value figure, the implied gross yield from market rent is about 7.25%. The calculation here is $8,112 divided by $111,840, resulting in 0.0725, or 7.25%.
The higher gross yield from Section 8 participation makes it a more attractive option for landlords and small-portfolio investors, especially considering the 27.1% renter density in the area. This high percentage indicates a significant portion of the population relies on rental housing, making Section 8 a stable source of income. However, the lack of data on days on market (DOM) suggests that there might be challenges in finding tenants who qualify for the program, or in maintaining occupancy rates over time.
In conclusion, while the Section 8 gross yield of 9.44% is more favorable than the market rent yield of 7.25%, the practical considerations such as tenant qualification and potential vacancy issues must also be factored into investment decisions. Investors should weigh these factors carefully when deciding whether to participate in the Section 8 program in Oberlin, KS.
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.