Location: Thayer 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 | $750 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,030 |
| 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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,030 | $133,742 | 0.77% | D |
| 3BR | $1,230 | $216,408 | 0.57% | F |
| 4BR | $1,350 | $283,568 | 0.48% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 68370, Hebron, NE, provides insight into potential investment yields. The Fair Market Rent (FMR) for a two-bedroom apartment in the metro area is set at $980 annually for fiscal year 2026. This translates to a monthly rental income of approximately $81.67. Using the median home value of $176,975, the implied gross yield for a property receiving Section 8 payments would be around 5.7%. This calculation is derived by dividing the annual rental income ($980) by the median home value ($176,975).
In contrast, the market rent for a two-bedroom apartment, based on Census ACS data, stands at $774 annually. This equates to a monthly rental income of about $64.50. Applying this figure to the median home value, the implied gross yield drops to approximately 4.4%. This yield is calculated similarly, by dividing the annual market rent ($774) by the median home value ($176,975).
The difference between these yields highlights the financial impact of participating in the Section 8 program versus renting at market rates. However, the decision on which scenario is more realistic should consider the local rental market dynamics. In Hebron, NE, the renter density is 28.2%, indicating that nearly one-third of residents are renters. Given this moderate level of rental activity, it's important to assess the stability and demand for rental properties.
The N/A-day Days on Market (DOM) suggests that there might be limited data on how quickly rental properties are leased, possibly due to low turnover or consistent demand. Despite this, the higher gross yield from Section 8 payments (5.7%) compared to market rent (4.4%) makes the former more attractive for landlords seeking stable, government-backed income. This is especially true in an area where the majority of residents might not be able to afford market rents, making Section 8 a reliable source of steady cash flow.
Investors should weigh the benefits of guaranteed rental income from Section 8 against the potential for higher yields from market-rate rentals. Given the median home values and the renter density, Section 8 participation appears to offer a more secure and predictable investment opportunity in Hebron, NE.
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.