Location: Thayer County, NE | Metro: Fillmore County, NE
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 | $730 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,350 |
| 5 Bedrooms | $1,566 |
| 6 Bedrooms | $1,754 |
| 7 Bedrooms | $1,894 |
| 8 Bedrooms | $1,989 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,250 | $237,336 | 0.53% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP 68322 might raise several concerns regarding the feasibility of renting out properties under the Section 8 program. Here's how the data addresses these objections.
Objection 1: Will Fair Market Rent (FMR) of $960 (metro FY 2026) cover the mortgage on a $181,751 home?
The FMR of $960 per month is the benchmark for rental payments in ZIP 68322. However, whether it can cover the mortgage on a home valued at $181,751 depends on additional factors such as interest rates and loan terms. Assuming a typical 30-year fixed-rate mortgage with an average interest rate of around 4%, the monthly payment on a $181,751 home would be approximately $880. This means that the FMR of $960 would indeed cover the mortgage payment, leaving a surplus of $80 per month. But it's important to note that property taxes, insurance, maintenance, and other costs will further reduce this margin.
Objection 2: Is there enough renter demand at 16.1%?
The rental demand in ZIP 68322, measured at 16.1%, suggests that nearly one-sixth of the housing units are rented. This percentage indicates a modest level of demand, but it's crucial to understand the context of the local market. While 16.1% might seem low compared to urban areas, it could be sufficient in a smaller or less densely populated area. The key here is to assess if the demand aligns with the supply of rental units. If the number of renters seeking affordable housing matches the number of available units, then the demand is likely adequate. However, the data does not provide a complete picture of the competition from non-Section 8 rentals or the overall vacancy rate, which would give a clearer indication of the market's health.
Objection 3: Will vouchers keep pace with market rents of $708?
The current market rent of $708 in ZIP 68322 is below the FMR of $960, indicating that voucher holders might have some flexibility in finding homes that meet their needs without exceeding the FMR. However, the long-term sustainability of this trend depends on the ability of the voucher program to adjust to inflation and changes in the housing market. As of now, there is no specific data on future adjustments to the voucher amounts, so it's uncertain if they will continue to match the FMR. Investors should monitor any updates to the voucher system and the local rental market trends closely to ensure continued profitability.
In summary, while the data shows that the FMR of $960 can cover the mortgage on a home priced at $181,751, it's essential to factor in additional expenses. The rental demand at 16.1% is present but requires further analysis to determine if it's robust enough against competition. Lastly, the current alignment between voucher amounts and market rents is favorable, but ongoing vigilance is necessary to anticipate potential changes in the future.
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.