Location: Stanton County, KS | Metro: Hamilton 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 | $910 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,240 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,830 |
| 5 Bedrooms | $2,123 |
| 6 Bedrooms | $2,378 |
| 7 Bedrooms | $2,568 |
| 8 Bedrooms | $2,696 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,240 | $104,567 | 1.19% | B |
| 3BR | $1,480 | $168,630 | 0.88% | C |
| 4BR | $1,830 | $214,193 | 0.85% | C |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 67878, Syracuse, KS, reveals an interesting dynamic between federally set rental rates and market-driven rents. Using the Federal Market Rent (FMR) for a 2-bedroom unit at $1,080 annually, the implied gross yield for a property valued at $151,436 would be approximately 0.71%. This calculation is derived from dividing the annualized FMR by the median home value, indicating that under the Section 8 program, the annual income from renting a 2BR property would be $1,080.
In contrast, the market rent for a 2BR property stands at $734 annually, based on Census ACS data. When applied to the same median home value, this yields an implied gross yield of about 0.48%. This lower figure reflects the reality of what tenants might pay on the open market, without the federal subsidy.
To determine which scenario is more realistic, consider the local context. With only 18.8% of residents being renters, the demand for rental properties, including those participating in the Section 8 program, is relatively low. However, the N/A-day Days on Market (DOM) suggests either a lack of recent sales data or that properties sell quickly once listed, which could indicate strong interest among buyers despite the low renter population.
The higher gross yield from the Section 8 program makes it more attractive for landlords and small-portfolio investors looking to secure stable, government-backed rental income. Despite the lower market rent, the guaranteed payment through Section 8 can provide a more predictable cash flow, which is crucial for long-term investment planning. Therefore, while the market rent of $734 offers a lower gross yield of 0.48%, the Section 8 rate of $1,080 providing a 0.71% gross yield is likely more practical in this ZIP code.
Investors should weigh these figures carefully, considering the potential for lower vacancy rates and the reliability of Section 8 payments against the possibility of securing higher market rents if demand were to increase. The choice ultimately depends on individual risk tolerance and investment goals.
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.