Location: Otoe County, NE | Metro: Otoe 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 | $820 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,490 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $860 | $87,526 | 0.98% | C |
| 2BR | $1,130 | $143,982 | 0.78% | D |
| 3BR | $1,490 | $228,272 | 0.65% | D |
| 4BR | $1,540 | $297,494 | 0.52% | F |
| 5BR | $1,786 | $353,598 | 0.51% | F |
U.S. Census Bureau data (2024)
The Section 8 housing market in ZIP 68410, encompassing Nebraska City, NE, and the broader Otoe County metro area, presents a nuanced investment opportunity for landlords and small-portfolio investors. The Fair Market Rent (FMR) set by the U.S. Department of Housing and Urban Development (HUD) for this region is $1,040 per month for the fiscal year 2026. In comparison, the market rent based on Census ACS data stands at $953 per month. This indicates that properties rented at the HUD FMR will generally cashflow positively, providing a margin of approximately $87 per unit above the average market rate.
To further analyze the potential returns, consider the median home value in the area, which is $201,693. Using the HUD FMR of $1,040, the rent-to-price ratio can be calculated as follows: $1,040 monthly rent translates to an annual rent of $12,480, resulting in a rent-to-price ratio of about 6.2%. This ratio suggests that rental income is a significant portion of the property's value, making it attractive for investors focused on generating passive income through rental properties.
The dynamics between renting and buying in this market are also noteworthy. With a median Days on Market (DOM) of N/A and a negligible 0.2% share of homes experiencing price cuts, it appears that the local real estate market is relatively stable. This stability implies that there is little pressure on landlords to reduce rents or offer discounts to attract tenants, maintaining a steady income stream.
In conclusion, the strongest angle for investors in ZIP 68410 is cashflow. Properties rented at the HUD FMR will provide a positive cashflow, supported by a favorable rent-to-price ratio and a stable real estate market that minimizes the need for rent reductions.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.