Location: Richardson County, NE | Metro: Nemaha County, NE
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,380 |
| 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)
A skeptical investor analyzing ZIP code 68442 might raise several concerns regarding the viability of investing in rental properties under the Section 8 program. Here's how the data addresses these points:
The first objection is whether Fair Market Rent (FMR) of $1,000 for the metro area in fiscal year 2026 will be sufficient to cover the mortgage on a home valued at $170,455. The FMR figure represents the maximum amount that a landlord can charge for a Section 8 rental unit. To determine if this is adequate, we must consider the typical mortgage payment. Assuming a standard 30-year fixed-rate mortgage with an interest rate of around 4%, the monthly mortgage payment for a $170,455 home would be approximately $820. This means that the FMR of $1,000 would indeed cover the mortgage payment, leaving some room for other expenses such as property taxes, insurance, and maintenance.
Another concern is the level of renter demand at 12.7%. This percentage indicates the proportion of households that are renters. While this figure is relatively low, it still suggests that there are a significant number of potential tenants. However, the data does not provide a breakdown of how many of those renters qualify for Section 8 assistance. It's important to note that the demand for affordable housing tends to remain steady even in areas with lower overall rental rates, making it a stable investment option.
The final objection pertains to the ability of vouchers to keep pace with market rents, given that the data shows the market rent as N/A. Without specific market rent figures, it's challenging to definitively state whether vouchers will match the local rental market. The U.S. Department of Housing and Urban Development (HUD) periodically adjusts voucher amounts based on changes in the local housing market. In the absence of precise market rent data, it's advisable to monitor local trends and HUD adjustments closely to ensure that the investment remains profitable.
In summary, while the data provides a mixed picture, the FMR of $1,000 is likely to cover the mortgage on a $170,455 home, and the 12.7% rental rate indicates a manageable level of tenant demand. The lack of specific market rent data for ZIP 68442 makes it difficult to predict future adjustments to voucher amounts, but staying informed about local market conditions will help mitigate this risk.
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.