Location: Otoe County, NE | Metro: Lincoln, NE HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,070 |
| 1 Bedroom | $1,140 |
| 2 Bedrooms | $1,390 |
| 3 Bedrooms | $1,920 |
| 4 Bedrooms | $2,160 |
| 5 Bedrooms | $2,506 |
| 6 Bedrooms | $2,807 |
| 7 Bedrooms | $3,032 |
| 8 Bedrooms | $3,184 |
U.S. Census Bureau data (2024)
The Section 8 cap rate scenario for ZIP 68317 (Bennet, NE) can be analyzed using the Fair Market Rent (FMR) and market rent figures for a 2BR property. The annualized FMR for a 2BR in ZIP 68317 for FY 2024 is $1230 per month, equating to an annual rental income of $14,760. Against the median home value of $398,132, this implies a gross yield of approximately 3.71%. In contrast, the Census ACS market rent figure of $1,163 per month translates to an annual rental income of $13,956, yielding a gross rental income of about 3.51%.
To determine which scenario is more realistic, consider the renter density and the days on market (DOM) data. Bennet, NE has a renter density of 9.5%, indicating that only a small portion of the population rents, let alone participates in the Section 8 program. Given the low renter density, it's reasonable to assume that the actual number of potential Section 8 tenants would be even lower. Additionally, the lack of specific DOM data suggests that there might not be a high turnover rate in the rental market, making it less likely for properties to be consistently occupied by Section 8 tenants.
Based on these factors, the $1,163 market rent scenario is more realistic. While the gross yield of 3.51% is slightly lower than the FMR-based yield of 3.71%, it reflects the true rental market conditions better. Landlords and small-portfolio investors should use the $1,163 figure as a more accurate representation of the expected rental income when calculating the cap rate for properties in ZIP 68317.
Data Sources: FMR data from HUD (2027). 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.