Location: Dodge County, NE | Metro: Omaha-Council Bluffs, NE-IA 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 | $1,000 |
| 1 Bedroom | $1,040 |
| 2 Bedrooms | $1,240 |
| 3 Bedrooms | $1,640 |
| 4 Bedrooms | $1,870 |
| 5 Bedrooms | $2,169 |
| 6 Bedrooms | $2,429 |
| 7 Bedrooms | $2,623 |
| 8 Bedrooms | $2,754 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,240 | $250,790 | 0.49% | F |
| 3BR | $1,640 | $372,933 | 0.44% | F |
| 4BR | $1,870 | $846,862 | 0.22% | F |
| 5BR | $2,169 | $1,168,932 | 0.19% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP 68064 in Valley, NE, reveals a challenging investment scenario for properties participating in the program. The Fair Market Rent (FMR) for a 2-bedroom unit in fiscal year 2024 is set at $1040 per month, equating to an annualized income of $12,480. When this figure is compared to the median home value of $512,423, it implies a gross yield of approximately 2.44%. This calculation is based on the assumption that the property would be rented out at the FMR rate.
On the other hand, the market rent for a similar unit stands at $1,029 per month, according to the Census ACS data. Annualizing this market rent produces an annual income of $12,348. Using the same median home value, this translates into a gross yield of about 2.41%. Thus, the gross yield under both the FMR and market rent scenarios is nearly identical, differing only slightly due to the minor difference in monthly rental rates.
Given the low renter density of 26.6%, it becomes evident that the demand for rental properties in Valley, NE, is not particularly robust. However, the N/A-day DOM (Days on Market) suggests either a lack of available data or a very short period for properties to find tenants, indicating a potentially competitive rental market. Despite this, the low renter density makes it less likely that the market rent will consistently be achieved, especially for Section 8 properties where rents are capped by government standards.
In conclusion, the FMR-based gross yield of 2.44% is more reflective of the actual potential returns for Section 8 properties in ZIP 68064. While the market rent scenario yields a slightly lower gross yield of 2.41%, the reality of the local rental market and the constraints imposed by the Section 8 program mean that achieving the higher market rent is unlikely. Therefore, landlords and small-portfolio investors should plan their investments with the expectation of a gross yield closer to the FMR rate.
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.