Location: York County, NE | Metro: Seward County, NE HUD Metro FMR Area
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 | $800 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,430 |
| 4 Bedrooms | $1,690 |
| 5 Bedrooms | $1,960 |
| 6 Bedrooms | $2,195 |
| 7 Bedrooms | $2,371 |
| 8 Bedrooms | $2,490 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,030 | $191,718 | 0.54% | F |
| 3BR | $1,430 | $256,830 | 0.56% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP 68456 in Utica, NE, reveals two distinct scenarios based on the Fair Market Rent (FMR) and the market rent figures. Using the annualized 2BR FMR of $930 for Fiscal Year 2024, the gross yield can be calculated as follows: $930 multiplied by 12 months equals an annual rental income of $11,160. Dividing this figure by the median home value of $246,094 gives an implied gross yield of approximately 4.5%. This calculation assumes that the property would be rented at the FMR rate year-round.
In contrast, using the market rent of $993 per month, the annual rental income increases to $11,916. When this amount is divided by the median home value of $246,094, the implied gross yield rises to about 4.8%. This scenario reflects a higher rental income potential, assuming the property can be leased at the market rate.
Given the 28.6% renter density in ZIP 68456, it's important to consider the likelihood of finding tenants willing to pay the market rent. The N/A-day DOM (Days on Market) suggests that there is limited data on how quickly properties are rented out, which could indicate either a stable rental market or a lack of recent transactions. However, the higher renter density implies a reasonable demand for rental housing, making the market rent scenario more plausible for most investors.
The gross yield difference between the two scenarios is minimal, with the market rent yielding only slightly higher returns. For a landlord or small-portfolio investor, the choice might come down to the ease of securing tenants and the stability of rental income. While the FMR rate provides a guaranteed minimum income through the Section 8 program, the market rent offers a higher potential return if the property can be consistently leased at that rate.
In conclusion, the gross yields for ZIP 68456 under both the FMR and market rent scenarios are relatively low, indicating that the cap rates would also be modest. The market rent scenario, at 4.8%, is more likely to reflect the actual rental income potential given the higher renter density. Investors should weigh the benefits of guaranteed income against the possibility of earning slightly more through market rents.
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.