Location: Seward County, KS | Metro: Haskell 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 | $740 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,480 |
| 5 Bedrooms | $1,717 |
| 6 Bedrooms | $1,923 |
| 7 Bedrooms | $2,077 |
| 8 Bedrooms | $2,181 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,000 | $119,710 | 0.84% | C |
| 3BR | $1,310 | $201,719 | 0.65% | D |
| 4BR | $1,480 | $242,089 | 0.61% | D |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 67877, centered around Sublette, Kansas, is built upon the disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $940, whereas the Census ACS reports the market rent at $808. This creates a gap of $132, which translates into a 16.3% difference favoring the FMR.
This gap makes the ZIP code an attractive yield play for landlords and small-portfolio investors. With the government guaranteeing payment up to the FMR, landlords can secure higher rental incomes than what the open market offers. For instance, a property that would typically rent for $808 can be leased to a voucher tenant for $940, increasing the landlord's revenue by $132 per month without the risk of vacancy or non-payment.
The context of Sublette, KS, where only 14.3% of residents are renters, underscores the potential for this strategy. The median home value of $206,606 suggests a relatively stable housing market, but the median income of $66,492 indicates that many households may struggle to afford market rents without assistance. As such, the Section 8 program serves as a critical bridge, allowing landlords to charge closer to the FMR while providing affordable housing options to low-income families.
Investors should consider the implications of this gap. While the higher FMR can increase yields, it also means that landlords will be charging below the typical market rate when they accept housing vouchers. However, given the stability and guaranteed payments associated with Section 8, this can still be a lucrative investment, especially in a region where rental demand is lower compared to owner-occupied homes.
To summarize, the $132 gap or 16.3% differential between the FMR and the market rent in ZIP 67877 presents a compelling opportunity for landlords and small-portfolio investors to enhance their rental yields through the Section 8 program, leveraging the financial support provided by the government to meet the needs of low-income renters in Sublette, 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.