Location: York County, NE | Metro: York County, NE
| Unit Size | Monthly FMR |
|---|---|
| Studio | $790 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,430 |
| 5 Bedrooms | $1,659 |
| 6 Bedrooms | $1,858 |
| 7 Bedrooms | $2,007 |
| 8 Bedrooms | $2,107 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 68401 reveals a mixed picture for potential landlords and small-portfolio investors.
The rent math does not favorably align with the financial goals of most property owners. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $990, while the current market rent based on Census ACS data stands at $888. This indicates that landlords might struggle to achieve the FMR without making significant improvements or finding ways to increase their properties' appeal, as the existing market conditions do not support such high rents.
Acquisition appears to be somewhat challenging due to the median home value being quite high at $248,947. With no data available on the average days on market (DOM) or the percentage of homes requiring price cuts, it's difficult to assess how quickly homes sell or at what discount. However, the high median home value suggests that acquiring properties in this ZIP code will require a substantial investment, which may not be immediately offset by rental income given the current market rates.
Tenant demand is relatively low in ZIP 68401. The total population is just 1,122, with only 17.4% being renters. This means there are approximately 195 potential tenants in the area, which is a limited pool for landlords looking to fill vacancies. Given the small number of renters, competition among landlords could be fierce, potentially driving down rental prices further.
In conclusion, ZIP 68401 presents a challenging environment for landlords and small-portfolio investors. While the area has a stable and possibly appreciating housing market indicated by the high median home value, the mismatch between the FMR and actual market rent, coupled with the low renter population, suggests that achieving desired returns through rental income alone would be difficult. Landlords should carefully consider these factors before investing in this ZIP code, and if they proceed, they must be prepared for a competitive rental market and possibly lower-than-expected rental yields.
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.