Location: Saline County, NE | Metro: Jefferson County, NE
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate scenario for ZIP code 68464 reveals two distinct annualized rental income figures based on the Fair Market Rent (FMR) and the market rent. For a two-bedroom property, the FMR set by the government for fiscal year 2026 is $960 annually. This translates into a monthly rent of $80, implying an annual gross yield of approximately 4.59% when calculated against the median home value of $195,977. The calculation is straightforward: ($960 / $195,977) * 100 = 4.59%. This figure represents the potential income if the property were rented at the FMR rate.
In contrast, the market rent, derived from the Census ACS data, stands at $675 annually. This results in a monthly rent of $56.25 and an annual gross yield of about 3.43% relative to the median home value. The calculation is similar: ($675 / $195,977) * 100 = 3.43%. This scenario reflects the actual rental rates observed in the area, providing a benchmark for the market conditions.
Evaluating the realism of these scenarios requires consideration of the local renter density and days on market (DOM) trends. With a 6.5% renter density, it's evident that the majority of homeowners in ZIP 68464 are owner-occupiers rather than investors. This suggests that market conditions might favor lower rental yields, aligning more closely with the $675 annual market rent scenario. However, the N/A-day DOM indicates a lack of recent sales data, which could mean either a stable market or insufficient information to draw conclusions on vacancy rates and turnover costs.
The FMR scenario offers a higher gross yield, making it potentially more attractive for investors seeking to maximize returns. Yet, the market rent scenario, while offering a lower gross yield, is grounded in the current economic reality of the area, suggesting a more stable and predictable income stream. Given the low renter density, it is prudent for investors to lean towards the market rent scenario to ensure steady occupancy and avoid the risk of overpricing the rental units.
In summary, the gross yield for a two-bedroom property in ZIP 68464 is 4.59% under the FMR scenario and 3.43% under the market rent scenario. The latter is more reflective of the current market conditions, considering the limited renter population and the absence of recent DOM data.
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.