Location: Thayer County, NE | Metro: Thayer 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 | $740 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,230 |
| 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 |
|---|---|---|---|---|
| 2BR | $1,020 | $93,281 | 1.09% | B |
| 3BR | $1,230 | $164,617 | 0.75% | D |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 68340, Deshler, Nebraska, reveals a distinct gap between the federally mandated Fair Market Rent (FMR) and the actual market rents observed. For a two-bedroom unit, the FMR set at $970 per month for fiscal year 2026 reflects a higher income level than what might be realistically expected from tenants in this area. When annualized, this figure suggests a monthly rental income of $970, leading to an annual income of $11,640. Given the median home value in the area is $125,081, this translates into an implied gross yield of approximately 9.3%.
In contrast, the market rent of $688 per month, as reported by the Census ACS, provides a more grounded perspective. This translates to an annual rental income of $8,256, implying a gross yield of about 6.6%. The lower gross yield based on market rent reflects the true economic conditions and tenant affordability in Deshler, NE.
The 21.4% renter density indicates that a significant portion of the population owns homes rather than renting. This factor should be considered when evaluating the potential demand for rental properties, particularly those participating in the Section 8 program. While the FMR-based scenario presents a more attractive gross yield, the reality of the local housing market, as indicated by the lower market rent, suggests that the 6.6% gross yield is more likely to be achieved.
The N/A-day Days on Market (DOM) implies that there isn't sufficient data to determine how quickly rental properties are leased in this area. However, given the lower renter density, it's reasonable to expect that finding eligible tenants willing to pay the FMR could take longer compared to finding tenants willing to pay the market rate. This further supports the argument that the $688 market rent scenario is more realistic.
In summary, while the Section 8 program offers a gross yield of 9.3%, the actual market conditions in Deshler, NE, suggest a more realistic gross yield of 6.6%. Landlords and small-portfolio investors should consider these figures when assessing the viability of participating in the Section 8 program in this area.
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.