Location: Sedgwick County, CO | Metro: Sedgwick County, CO
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 | $750 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,580 |
| 5 Bedrooms | $1,833 |
| 6 Bedrooms | $2,053 |
| 7 Bedrooms | $2,217 |
| 8 Bedrooms | $2,328 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,210 | $190,295 | 0.64% | D |
U.S. Census Bureau data (2024)
The analysis for ZIP code 80737 reveals a nuanced picture regarding the potential returns for landlords and small-portfolio investors involved in Section 8 properties. Using the annualized Fair Market Rent (FMR) for a 2-bedroom apartment set at $970 for fiscal year 2026, and the market rent figure of $760 based on the Census ACS data, we can derive the gross yields relative to the median home value of $165,195.
In the scenario where the 2BR FMR of $970 is used, the annual rent would be $11,640. This translates into an implied gross yield of approximately 7.05%. The calculation is straightforward: $11,640 annual rent divided by the median home value of $165,195. This yield represents a conservative estimate of the potential income from a Section 8 rental property in this area.
On the other hand, if we consider the market rent of $760, the annual rent would amount to $9,120. This scenario implies a gross yield of about 5.52%. The calculation here involves dividing the $9,120 annual rent by the same median home value of $165,195. This lower yield reflects a more realistic expectation of what landlords might receive from tenants who are not part of the Section 8 program.
Given the 30.6% renter density in ZIP 80737, it is important to note that while the higher yield from Section 8 is attractive, it also comes with additional administrative requirements and potential risks associated with government programs. The N/A-day DOM (Days on Market) suggests that there may be a lack of recent sales data to accurately assess how quickly homes are turning over, which could indicate either a stable market or one that is less active.
The gross yield comparison between the two scenarios highlights a significant difference. The 7.05% yield from the FMR-based scenario is notably higher than the 5.52% yield derived from the market rent. However, the actual gross yield that landlords can expect should be closer to the market rent figure of $760, considering the limited availability of Section 8 vouchers and the need for properties to meet certain criteria to qualify for the program. This makes the 5.52% gross yield more realistic for most landlords and small-portfolio investors.
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.