Location: Saline County, NE | Metro: Jefferson County, NE
| Unit Size | Monthly FMR |
|---|---|
| Studio | $750 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,430 |
| 4 Bedrooms | $1,480 |
| 5 Bedrooms | $1,717 |
| 6 Bedrooms | $1,923 |
| 7 Bedrooms | $2,077 |
| 8 Bedrooms | $2,181 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 68338, located in the Saline County, NE metro area, reveals several key points for potential landlords and small-portfolio investors.
The first question addresses whether the rent math works. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $990, whereas the current market rent, according to Census ACS data, is only $450. This significant gap suggests that the rent math does not work favorably for landlords in this area, as the market rate is far below the FMR. Landlords should consider this discrepancy when setting rental prices, as they might not be able to charge the full FMR due to market conditions.
The second point concerns the affordability of acquiring properties. With a median home value of $199,995, the cost of entry into the real estate market in this ZIP code is relatively low. However, the lack of available data on days on market (DOM) and the percentage of homes needing price cuts indicates a possible lack of recent sales activity or a stable market where few homes are being listed for sale. This could make it challenging to find good deals quickly, but the lower median home value still makes acquisitions affordable compared to other areas in the region.
The third aspect is tenant demand. ZIP 68338 has a population of 217, with only 6.6% of residents identified as renters. This low renter share implies that there is limited demand for rental properties in the area. Landlords would need to carefully evaluate the potential occupancy rates and the stability of their tenant base given the small number of likely renters.
In conclusion, ZIP 68338 presents a challenging investment scenario for landlords. The rent math does not align favorably with the FMR, indicating lower potential rental income. While property acquisition is affordable, the low renter share suggests weak tenant demand. These factors collectively suggest that the area may not be an optimal choice for real estate investment focused on rental income. Landlords should proceed with caution and consider diversifying their portfolios outside of this ZIP code to ensure financial viability.
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.