Location: Seward County, NE | Metro: Lincoln, NE HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $820 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,460 |
| 4 Bedrooms | $1,710 |
| 5 Bedrooms | $1,984 |
| 6 Bedrooms | $2,222 |
| 7 Bedrooms | $2,400 |
| 8 Bedrooms | $2,520 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 68360 reveals two distinct scenarios based on available data.
First, using the annualized Fair Market Rent (FMR) for a 2-bedroom unit at $1340 (for FY 2024), the implied gross yield can be calculated. Given the median home value of $419,461, the annual rent revenue would be $1340 multiplied by 12 months, equating to $16,080 per year. This results in a gross yield of approximately 3.8% ($16,080 / $419,461).
Second, considering the market rent is listed as N/A, we cannot directly calculate an alternative gross yield. However, it's important to note that the absence of market rent data suggests limited information on actual rental rates in the area, which could indicate either a lack of rental activity or sparse data collection.
Given the 5.9% renter density in ZIP 68360, it becomes evident that the majority of residents in this area are homeowners rather than renters. This low renter density implies that the demand for rental properties, including those under the Section 8 program, might be relatively weak compared to areas with higher renter populations.
The N/A-day Days on Market (DOM) further complicates the analysis. Typically, DOM provides insight into how quickly rental units are occupied, which is crucial for understanding cash flow stability. Without this data, it's challenging to assess the speed at which a Section 8 property would be rented out, potentially affecting the overall profitability.
Considering these factors, the scenario based on the 2BR FMR at $1340 appears more concrete and realistic for investment analysis. The gross yield of 3.8%, while modest, offers a clear baseline for potential returns under the Section 8 program. Landlords and small-portfolio investors should factor in the low renter density and the uncertainty around market rents when evaluating the feasibility of Section 8 investments in ZIP 68360.
Investors should also consider the broader economic context of the area, including employment trends and housing demand, to refine their investment strategy. While the FMR-based gross yield gives a starting point, the true viability of Section 8 properties in this ZIP code depends on the interplay between local rental market dynamics and the specific terms of the Section 8 contracts.
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.