Location: Jefferson County, NE | Metro: Jefferson 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 | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,390 |
| 5 Bedrooms | $1,612 |
| 6 Bedrooms | $1,805 |
| 7 Bedrooms | $1,949 |
| 8 Bedrooms | $2,046 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $76,173 | 1.33% | A |
| 3BR | $1,380 | $162,669 | 0.85% | C |
| 4BR | $1,390 | $183,057 | 0.76% | D |
| 5BR | $1,612 | $213,446 | 0.76% | D |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 68352, Fairbury, Nebraska, provides a clear picture of potential rental yields under two scenarios: using the Fair Market Rent (FMR) and the market rent. For a two-bedroom unit, the annualized FMR for FY 2026 is $960, while the Census ACS reports the market rent at $669.
To calculate the gross yield, we first annualize these figures. The annualized FMR for a two-bedroom unit is $960 * 12 = $11,520. The market rent annualizes to $669 * 12 = $8,028. Given the median home value of $114,532, the gross yield using the FMR would be $11,520 / $114,532 * 100 = approximately 10.06%. In contrast, the gross yield based on market rent would be $8,028 / $114,532 * 100 = approximately 7.01%.
The higher gross yield of 10.06% derived from the FMR scenario appears more attractive at first glance. However, it's important to consider the actual demand for rentals and the ease of leasing units. With a renter density of 29.7%, there is a moderate demand for rentals in the area. The N/A-day DOM (Days on Market) suggests that listings are either not tracked or are quickly leased, indicating strong local demand for affordable housing.
Given the context, the FMR-based gross yield of 10.06% is more realistic. This is because Section 8 tenants typically have stable income sources and a lower risk of defaulting on rent payments, making it easier for landlords to achieve the higher FMR rates consistently. Additionally, the quick leasing indicated by the N/A-day DOM supports the likelihood of achieving higher rental rates through the Section 8 program.
Investors should focus on the FMR-based gross yield when evaluating properties in ZIP 68352. While the market rent scenario offers a yield of 7.01%, it does not fully capture the potential benefits of the Section 8 program, such as guaranteed income and lower vacancy rates.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.