Location: York County, NE | Metro: Seward County, NE HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $830 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,470 |
| 4 Bedrooms | $1,610 |
| 5 Bedrooms | $1,868 |
| 6 Bedrooms | $2,092 |
| 7 Bedrooms | $2,259 |
| 8 Bedrooms | $2,372 |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP 68460 revolves around the disparity between the HUD Fair Market Rent (FMR) and the actual market rent. The FMR for a one-bedroom apartment in ZIP 68460 for fiscal year 2024 is $910, while the average monthly rent is $945. This creates a gap of $35, or approximately 3.7%, between the FMR and the market rent.
If the FMR were higher than the market rent, voucher tenants would provide a yield play due to the guaranteed income from the government. However, since the FMR is lower than the market rent, landlords accepting Section 8 vouchers in ZIP 68460 face a cost of housing tenants below the open-market rates. This means landlords must accept a lower rent than what the market could potentially offer, reducing their profit margins.
The ZIP code's demographics further complicate the situation. With only 6.7% of residents being renters and a median income of $83,750, the market leans towards homeownership. Additionally, the median home value is $305,184, which is significantly higher than the average rent. These factors suggest that the demand for rental properties is relatively low compared to ownership, making it essential for landlords to manage their properties efficiently to ensure stable occupancy.
The 9.7% vacancy rate in ZIP 68460 indicates a moderate risk of weakened demand, and the high price-to-rent ratio of 26.9 makes cash flow challenging. Therefore, landlords and small-portfolio investors must focus on tenant screening, deferred maintenance, and building strong local relationships to succeed in this market.
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.