Location: Boone County, NE | Metro: Boone 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 | $800 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,450 |
| 5 Bedrooms | $1,682 |
| 6 Bedrooms | $1,884 |
| 7 Bedrooms | $2,035 |
| 8 Bedrooms | $2,137 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,100 | $236,013 | 0.47% | F |
| 3BR | $1,390 | $297,522 | 0.47% | F |
| 4BR | $1,450 | $359,727 | 0.4% | F |
U.S. Census Bureau data (2024)
To decide whether to invest in ZIP 68620 (Albion, NE) for Section 8 properties, follow this decision tree:
1) Does the Fair Market Rent (FMR) of $1,020 cover the debt service on a $310,788 property?
No. The FMR of $1,020 does not sufficiently cover the debt service on a property valued at $310,788. Debt service includes monthly mortgage payments, property taxes, insurance, and maintenance costs. Typically, a property of this value would require a higher rental income to ensure profitability.
2) How does the market rent of $795 compare to the FMR?
The market rent of $795 is below the FMR of $1,020. This suggests that tenants receiving Section 8 vouchers can afford to pay more than what the average market rent is. However, since the FMR is not covering the debt service, this comparison alone does not make the investment viable.
3) Is there enough demand with 21.6% of residents being renters and the Days on Market (DOM) being N/A?
It depends. With 21.6% of residents renting, there is some demand for rental properties in Albion, NE. However, the lack of data regarding the DOM makes it difficult to assess how quickly properties are rented out. Additionally, the fact that the FMR does not cover the debt service means that even if there is sufficient demand, the investment may still not be profitable.
If you are considering investing in ZIP 68620 for Section 8 properties, the first step is to ensure that the FMR can cover your debt service. Since it does not, you must either find a less expensive property or consider other sources of income to make up for the shortfall. If you proceed despite this, the next consideration is whether the market rent is competitive. In this case, it is lower than the FMR, which could be advantageous if you manage to attract voucher holders. Lastly, you need to determine if the rental market has enough demand to support your investment. With limited data on DOM, you may need to conduct further research or consult local real estate agents to get a clearer picture of the rental market dynamics.
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.