Location: Nemaha County, NE | Metro: Johnson County, NE
| Unit Size | Monthly FMR |
|---|---|
| Studio | $730 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,410 |
| 5 Bedrooms | $1,636 |
| 6 Bedrooms | $1,832 |
| 7 Bedrooms | $1,979 |
| 8 Bedrooms | $2,078 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 68378 reveals some interesting insights for landlords and small-portfolio investors. To begin with, let's look at the annualized figures for a 2-bedroom unit based on the Fair Market Rent (FMR) and market rent.
The FMR for a 2-bedroom unit in ZIP 68378 for fiscal year 2026 is set at $960 per month. This translates to an annual income of $11,520. Given the median home value of $249,929, the implied gross yield from the FMR would be approximately 4.6%. The calculation is straightforward: divide the annual income ($11,520) by the median home value ($249,929).
On the other hand, the market rent for a 2-bedroom unit in the same area is $950 per month according to the Census ACS data. This results in an annual income of $11,400. When we use the median home value to calculate the gross yield from market rent, it comes out to about 4.57%. The calculation here is also simple: divide the annual income ($11,400) by the median home value ($249,929).
The difference between the two gross yields is minimal, with the FMR scenario providing a slightly higher yield of 4.6% compared to the market rent scenario's 4.57%. However, considering the 10.6% renter density in the area, the market rent scenario is likely more realistic. A lower renter density suggests that there might be fewer tenants willing to pay the higher FMR rate, making the market rent figure a better reflection of what can be realistically achieved.
Moreover, the fact that the days on market (DOM) is listed as N/A indicates either insufficient data or a highly localized rental market where turnover is not frequent enough to provide reliable averages. This further supports the use of market rent as a more practical benchmark for gross yield calculations.
In conclusion, while both the FMR and market rent scenarios provide similar gross yields, the market rent of $950 per month, leading to a 4.57% gross yield, is the more realistic figure for ZIP 68378. Landlords and investors should use this as a basis for their investment decisions, keeping in mind the local rental market dynamics and the relatively low renter density.
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.