Location: Saunders County, NE | Metro: Lincoln, NE HUD Metro FMR Area
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 | $900 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,490 |
| 4 Bedrooms | $1,790 |
| 5 Bedrooms | $2,076 |
| 6 Bedrooms | $2,325 |
| 7 Bedrooms | $2,511 |
| 8 Bedrooms | $2,637 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,120 | $243,934 | 0.46% | F |
| 3BR | $1,490 | $345,645 | 0.43% | F |
| 4BR | $1,790 | $500,113 | 0.36% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP 68003 in Ashland, NE, reveals a specific financial landscape that investors should consider. Based on the Fair Market Rent (FMR) for a two-bedroom apartment set at $980 annually for Fiscal Year 2024, and the market rent at $866 annually as per the Census ACS data, we can derive the gross yields relative to the median home value of $394,686.
If you were to lease a property under the Section 8 program at the annualized FMR rate of $980, the implied gross yield would be approximately 0.25%. This is calculated by taking the annual rent ($980) and dividing it by the median home value ($394,686), resulting in a yield of 0.25%. However, if you were to lease the same property at the market rent rate of $866, the implied gross yield would drop to about 0.22%. These figures represent the direct rental income yield without factoring in operating expenses or other considerations.
The lower gross yield in the market rent scenario underscores the importance of understanding the dynamics of the local housing market. With an 18.8% renter density, it's clear that a significant portion of the population in Ashland, NE, does not rent, which could impact the demand for rental properties. Additionally, the lack of data regarding the days on market (DOM) suggests either a very stable rental market or limited available data, making it difficult to predict vacancy rates or turnover costs.
In conclusion, the Section 8 FMR provides a slightly higher gross yield compared to the market rent, making it a potentially more attractive option for landlords and small-portfolio investors looking to maximize rental income. However, the decision should also take into account the specific needs and preferences of the tenants, as well as the operational challenges associated with managing properties in a market with moderate renter density.
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.