Location: Otoe County, NE | Metro: Nemaha County, NE
| Unit Size | Monthly FMR |
|---|---|
| Studio | $750 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
U.S. Census Bureau data (2024)
The ZIP code 68421, located in Otoe County, Nebraska, serves as a cash-flow anchor within a Section 8 portfolio strategy. The Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,050, which is significantly higher than the median market rent of $478. This discrepancy provides a substantial cushion for landlords, ensuring that they can cover their expenses and generate positive cash flow.
The median home value in ZIP 68421 is $131,144, which is relatively low compared to other areas in the United States. However, the FMR of $1,050 exceeds the market rent by a wide margin, creating a favorable environment for landlords participating in the Section 8 program. The spread between the FMR and the market rent means that landlords can expect steady and reliable rental income, even if the local real estate market remains stagnant.
While appreciation plays and diversifiers are also important components of a real estate investment strategy, ZIP 68421 excels as a cash-flow anchor due to the significant difference between the FMR and the market rent. The high FMR ensures that landlords receive sufficient rental payments to cover mortgage costs, maintenance, and other expenses associated with property ownership.
In conclusion, ZIP 68421 is best suited as a cash-flow anchor within a Section 8 portfolio strategy. With a Federal Market Rent of $1,050 and a median market rent of $478, landlords can rely on consistent income to support their investment goals. The low median home value of $131,144 further enhances the appeal of this ZIP code for those seeking stable and predictable returns on their investments.
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.