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 | $730 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,390 |
| 5 Bedrooms | $1,612 |
| 6 Bedrooms | $1,805 |
| 7 Bedrooms | $1,949 |
| 8 Bedrooms | $2,046 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $217,832 | 0.46% | F |
| 3BR | $1,350 | $291,710 | 0.46% | F |
| 4BR | $1,390 | $335,167 | 0.41% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 68446 in Syracuse, NE, reveals two distinct scenarios based on the Fair Market Rent (FMR) and market rent figures.
First, using the annualized 2BR FMR of $960 for fiscal year 2026, the implied gross yield for properties in this area is calculated as follows:
Second, applying the market rent figure of $583 from the Census ACS, the calculation changes:
The difference between these yields highlights the potential benefits of participating in the Section 8 program compared to traditional market rents. However, the choice of which scenario is more realistic hinges on several factors, including the local rental market dynamics and the willingness of tenants to secure housing through the Section 8 program.
Given that only 17.2% of the population in Syracuse, NE, are renters, it suggests a relatively low demand for rental properties. This statistic implies that the pool of potential Section 8 participants is smaller, making the higher FMR yield less likely to be realized consistently across all units. The lack of available data on days on market (DOM) further complicates the assessment of how quickly properties might be leased under either scenario.
In conclusion, while the FMR provides a higher gross yield at 0.36%, the actual market conditions, with a lower renter density, suggest that the more realistic expectation for landlords and small-portfolio investors would be closer to the 0.22% gross yield derived from the market rent. This analysis should help inform investment decisions in this ZIP code, emphasizing the need for careful consideration of local market conditions.
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.