Location: Otoe County, NE | Metro: Johnson 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 | $1,060 |
| 1 Bedroom | $1,120 |
| 2 Bedrooms | $1,470 |
| 3 Bedrooms | $1,940 |
| 4 Bedrooms | $2,000 |
| 5 Bedrooms | $2,320 |
| 6 Bedrooms | $2,598 |
| 7 Bedrooms | $2,806 |
| 8 Bedrooms | $2,946 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,940 | $207,092 | 0.94% | C |
U.S. Census Bureau data (2024)
The investment risk assessment for ZIP code 68448 reveals several potential challenges for landlords considering participation in the Section 8 program. First, tenant turnover could be higher due to the market rent being lower than the Fair Market Rent (FMR). The market rent stands at $1,278, while the FMR for the area is $1,330, indicating that tenants might seek higher rents elsewhere. This discrepancy can lead to frequent changes in occupancy, which can be costly and time-consuming.
Vacancy exposure is another concern. With no data available on the average number of days on market (DOM), it's difficult to predict how long properties might remain vacant. High vacancy rates can significantly impact cash flow, especially for landlords who rely on consistent rental income. Additionally, the typical home value in the area is $177,371, which is relatively high compared to the median income of $74,500. This suggests that many residents might struggle to afford homeownership, potentially leading to deferred maintenance issues on rental properties as tenants may not have the funds to cover repairs.
However, these risks must be weighed against the high concentration of renters in the area. The renter share is 16.0%, which is notably high and typically indicates a strong demand for housing vouchers. This high renter density can translate into a robust pool of Section 8 tenants, ensuring steady occupancy and reducing the likelihood of prolonged vacancies.
In conclusion, the overall risk for a first-time Section 8 landlord in ZIP 68448 is moderate. While there are significant challenges related to tenant turnover and potential maintenance issues, the high renter density provides a solid foundation for stable occupancy and income.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.