Location: Richardson County, NE | Metro: Nemaha County, NE
| Unit Size | Monthly FMR |
|---|---|
| Studio | $870 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,200 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,580 |
| 5 Bedrooms | $1,833 |
| 6 Bedrooms | $2,053 |
| 7 Bedrooms | $2,217 |
| 8 Bedrooms | $2,328 |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 68437 is centered around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $1,010, while the Census ACS reports the average market rent at $850. This creates a gap of $160 per month, representing a 19.75% difference between the two figures.
Given that the FMR exceeds the market rent, landlords and small-portfolio investors can leverage this situation to maximize yields. Voucher tenants provide a guaranteed source of income that aligns with the higher FMR, ensuring that properties are rented out at rates above the open-market average. This is particularly advantageous in ZIP 68437 where only 14.2% of residents are renters, indicating a relatively low competition for rental units. Moreover, the median home value stands at $93,695, suggesting that property values are moderate and likely stable, which supports the long-term viability of rental investments.
The median income in the area is $43,750, which is lower than the FMR threshold for a single-bedroom unit. This means that many local residents would struggle to afford rent at the FMR level without assistance, making Section 8 vouchers an essential component for maintaining occupancy rates. By accepting voucher tenants, landlords can ensure steady cash flow and avoid the risk of vacancies that could occur if they priced their units closer to the FMR.
In conclusion, the gap between the FMR and market rent in ZIP 68437 presents a unique opportunity for landlords to achieve higher yields through the Section 8 program. The relatively low percentage of renters and the moderate median home value support this strategy, making it a sound investment decision for those looking to capitalize on the local rental market dynamics.
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.