Location: Saline County, NE | Metro: Seward County, NE 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 | $710 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,560 |
| 5 Bedrooms | $1,810 |
| 6 Bedrooms | $2,027 |
| 7 Bedrooms | $2,189 |
| 8 Bedrooms | $2,298 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $182,520 | 0.55% | F |
| 3BR | $1,410 | $235,854 | 0.6% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking into Dorchester, NE (ZIP 68343) might have several concerns regarding the feasibility of investing in the area through the Section 8 program. Let's address these objections with the available data.
Objection 1: Will Fair Market Rent (FMR) of $870 cover the mortgage on a $198,465 home?
The average Fair Market Rent (FMR) for ZIP 68343 in fiscal year 2024 is set at $870 per month. To determine if this amount can cover the mortgage on a home priced at $198,465, we need to consider the interest rates and the terms of the mortgage. Assuming a typical 30-year fixed-rate mortgage with an interest rate of around 4%, the monthly payment on such a loan would be approximately $980. This means that the FMR does not fully cover the mortgage payment, leaving a shortfall of about $110 per month. However, it's important to note that this calculation does not include property taxes, insurance, or maintenance costs, which are additional expenses for landlords.
Objection 2: Is there enough renter demand at 23.4%?
The percentage of households that are renters in ZIP 68343 is 23.4%. While this figure indicates a moderate level of rental demand, it's crucial to understand that this statistic alone does not provide a complete picture of the rental market's health. A more comprehensive analysis would require examining vacancy rates, the number of available rental units, and the demographic trends that could influence future demand. The data suggests that there is a reasonable base of renters, but the overall demand dynamics would need further investigation to ensure stable occupancy rates.
Objection 3: Will vouchers keep pace with $619 market rents?
The market rent in ZIP 68343 is reported to be $619, which is below the FMR. However, the question of whether voucher amounts will keep pace with market rents is critical. The Housing Choice Voucher (Section 8) program aims to cover a significant portion of the rent, but the exact amount varies based on household income and other factors. If the voucher amount remains close to the FMR, landlords may find themselves receiving slightly more than the market rent, which could help offset some of the financial risks associated with renting to low-income tenants. However, it's essential to monitor any changes in the voucher program that could affect the subsidy levels.
In summary, while the data provides a starting point for understanding the rental market in Dorchester, NE, it also highlights areas where further research is necessary to make informed investment decisions. The FMR does not entirely cover the mortgage payment, the renter demand is moderate but requires deeper analysis, and the alignment of voucher amounts with market rents needs ongoing attention.
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.