Location: Seward County, KS | Metro: Meade 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 | $1,220 |
| 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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,220 | $153,509 | 0.79% | D |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate scenario for ZIP code 67869 reveals a nuanced picture that investors should consider carefully. Based on the Fair Market Rent (FMR) for a 2-bedroom unit set at $890 annually for Fiscal Year 2026, the implied gross yield can be calculated using the median home value of $137,995. This results in an annualized rent of $890 multiplied by the number of units, assuming a single-family home with two bedrooms. For simplicity, we'll use the annual figure directly.
To calculate the gross yield, divide the annual rental income by the property value. In this case, the gross yield for a 2BR unit under the Section 8 program would be approximately 6.45%. The calculation is as follows:
$890 / $137,995 = 0.00645 or 6.45%
Comparatively, using the market rent of $780 per month from the Census ACS data, the annualized rent becomes $9,360. Applying the same median home value, the gross yield under market conditions is about 6.79%. The calculation is:
$9,360 / $137,995 = 0.0679 or 6.79%
Given the 24.9% renter density in ZIP 67869, it's important to note that the market rent scenario might be more realistic due to the higher proportion of renters in the area. However, the Section 8 rent is guaranteed by the government, providing a stable income stream which could be appealing to risk-averse investors. The fact that the Days on Market (DOM) is listed as N/A suggests either insufficient data or that properties are sold quickly, which could indicate strong demand in the area.
In conclusion, while the market rent provides a slightly higher gross yield, the Section 8 program offers a more predictable income source. Investors should weigh these factors based on their risk tolerance and investment goals. The gross yields of 6.45% for Section 8 and 6.79% for market rents provide a clear basis for comparison.
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.