Location: Kearny County, KS | Metro: Grant 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 | $1,120 |
| 1 Bedroom | $1,160 |
| 2 Bedrooms | $1,520 |
| 3 Bedrooms | $1,810 |
| 4 Bedrooms | $2,000 |
| 5 Bedrooms | $2,320 |
| 6 Bedrooms | $2,598 |
| 7 Bedrooms | $2,806 |
| 8 Bedrooms | $2,946 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,520 | $130,870 | 1.16% | B |
| 3BR | $1,810 | $206,383 | 0.88% | C |
| 4BR | $2,000 | $252,437 | 0.79% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 67860, which includes Lakin, Kansas, in Kearny County, can be straightforward if understood correctly. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2026 is set at $1,360. However, the local market rent for a similar unit is reported at $1,134 according to the Census ACS data.
A landlord participating in the Section 8 program should know that the total rent is not solely covered by the government. Instead, the housing authority calculates the amount they will reimburse based on the SAFMR, local market conditions, and the tenant's ability to pay. Typically, the tenant is responsible for paying 30% of their adjusted income towards rent. This amount is then combined with a utility allowance, which varies but generally does not exceed the difference between the market rent and the SAFMR.
To illustrate, let's assume a tenant has an adjusted monthly income of $1,000. Thirty percent of this income would be $300, which is what the tenant would contribute toward the rent. The housing authority would then cover the remaining portion up to the SAFMR limit, minus any utility allowance. If the utility allowance is set at $150, the housing authority would pay $910 ($1,360 - $300 - $150).
This means that for a two-bedroom apartment in ZIP 67860, where the local market rent is $1,134, the landlord would receive a total of $1,060 ($300 from the tenant + $760 from the housing authority, assuming a $150 utility allowance). This results in a reimbursement gap of $74 per month ($1,134 - $1,060).
In essence, landlords in ZIP 67860 who accept Section 8 vouchers will see a slight shortfall compared to the local market rent. The gap indicates that while landlords are guaranteed a certain level of payment, it might not fully align with the current rental market rates. Therefore, landlords should carefully consider this economic reality when deciding whether to participate in the Section 8 program.
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.