Location: Butler County, NE | Metro: Butler 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 | $750 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,400 |
| 5 Bedrooms | $1,624 |
| 6 Bedrooms | $1,819 |
| 7 Bedrooms | $1,965 |
| 8 Bedrooms | $2,063 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,030 | $219,356 | 0.47% | F |
| 3BR | $1,400 | $272,398 | 0.51% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis for properties in ZIP code 68624, specifically within Bellwood, NE, revolves around the significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2026, the FMR is set at $970, whereas the Census ACS reports the average market rent at $786. This creates a disparity of $184 per month, or approximately 19%, where the FMR exceeds the market rent.
This gap makes properties in this area a prime yield play for landlords and small-portfolio investors. The higher FMR allows voucher holders to pay rents that are above the local market rate, thereby providing an opportunity for increased profitability. In Bellwood, NE, where only 11.8% of residents are renters and the median home value stands at $245,443, the relatively low median income of $69,167 suggests that many potential tenants would struggle to afford market-rate housing without assistance.
By accepting Section 8 vouchers, landlords can tap into a steady stream of government-subsidized rental payments, ensuring consistent cash flow even in a market where rents are generally lower. This is particularly advantageous given the limited number of renters in the area, as it can help stabilize occupancy rates and reduce the risk of vacancies.
Moreover, the higher FMR compared to the local market rent means that landlords can charge rents that are closer to the FMR, thus maximizing their revenue. This is especially beneficial in a region where the cost of living might be lower, but the demand for affordable housing remains high. Therefore, properties in ZIP 68624 that participate in the Section 8 program can expect to see a positive impact on their investment yields, thanks to the favorable gap between FMR and market rent.
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.