Location: Scott County, KS | Metro: Gove County, KS
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
U.S. Census Bureau data (2024)
In analyzing ZIP code 67850 for potential Section 8 investments, follow this decision tree to determine if buying here is advisable.
Step 1: Evaluate the Fair Market Rent (FMR) against the debt service of a property. The FMR for the metro area in fiscal year 2026 is set at $1,060. A $121,454 property would typically have a monthly mortgage payment well below this figure, assuming standard interest rates and a typical loan term. For instance, with a 30-year fixed-rate mortgage at 4%, the monthly payment would be approximately $590. This means the FMR does indeed cover the debt service, clearing a significant portion of the monthly expenses. (Yes, proceed to Step 2)
Step 2: Compare the market rent to the FMR. According to the Census ACS data, the average market rent is $675. This is below the FMR of $1,060, indicating that properties rented out under the Section 8 program can command higher rents compared to the general market. This differential suggests a potential for better cash flow when renting to Section 8 tenants. (Yes, proceed to Step 3)
Step 3: Assess the rental demand. In ZIP 67850, 31.2% of residents are renters. However, the data lacks information on the days on market (DOM), which is crucial for understanding how quickly rental units turn over. Without this data, it's challenging to gauge the urgency of rental demand. Given the percentage of renters, there is a substantial demand base, but the absence of DOM data introduces uncertainty. (It depends)
If you find that the days on market are low, say under 30 days, this would suggest strong demand and a positive outlook for Section 8 investments. Conversely, if the DOM is high, it could indicate weak demand, making it harder to fill vacancies even with the support of Section 8.
In conclusion, based on the FMR covering debt service and the market rent being below the FMR, ZIP 67850 appears favorable for Section 8 investments. However, the strength of the rental demand hinges on the days on market data, which must be researched further to make a final determination. Ensure you investigate the local real estate market dynamics to confirm the viability of this investment strategy.
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.