Location: York 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 | $920 |
| 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 | $145,342 | 0.69% | D |
| 3BR | $1,380 | $196,172 | 0.7% | D |
U.S. Census Bureau data (2024)
The neighborhood in ZIP code 68354, located in Fairmont, NE, is characterized by a relatively small population of 863 residents. Only 18.2% of these residents are renters, indicating a primarily owner-occupied community. The median household income stands at $73,906, reflecting a middle-class area where residents have stable financial situations. Median home values in the area are notably lower at $173,504, suggesting an affordable housing market compared to many other regions.
When it comes to rental economics, the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $960. However, the actual market rent in Fairmont, as reported by the Census Bureau's American Community Survey (ACS), is significantly lower at $653 per month. This discrepancy between the FMR and the market rent indicates a potential opportunity for landlords and investors who can leverage the difference to attract Section 8 tenants while maintaining a reasonable profit margin.
Given the characteristics of ZIP 68354, it appears to be well-suited for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the low percentage of renters and the manageable gap between FMR and market rents make it feasible to manage properties without extensive tenant screening or maintenance efforts. On the other hand, value-add buyers can focus on improving property conditions or amenities to justify slightly higher rents, still within the bounds of the FMR, thus increasing their revenue potential.
In conclusion, ZIP 68354 offers a balanced environment for Section 8 investments, with economic indicators that support both passive and active management strategies. The combination of an affordable housing market and a stable middle-income demographic provides a solid foundation for successful investment opportunities.
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.