Section 8 Fair Market Rent (FMR) for ZIP 68632 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Housing Authorities Serving ZIP 68632

• David City Housing Authority (David City, NE)

A landlord considering purchasing a property in ZIP code 68632 for Section 8 investment should follow these steps:

1) Does FMR $960 (metro FY 2026) clear debt service on a $229,432 property?

• Yes: At a Fair Market Rent (FMR) of $960, the income generated from a Section 8 tenant would be sufficient to cover the debt service on a property valued at $229,432. This means the rental income can meet mortgage payments and other financing obligations.
• No: If the FMR of $960 does not cover the debt service on a $229,432 property, then acquiring a property in this area strictly for Section 8 tenants is financially unviable. The landlord would need to consider alternative sources of income or properties with lower purchase prices.

2) Is market rent $775 (Census ACS) above, at, or below FMR?

• Market Rent Above FMR: If the market rent exceeds the FMR of $960, the landlord could potentially earn more by renting to non-Section 8 tenants. However, this does not preclude the property's suitability for Section 8 if the landlord is willing to accept the lower guaranteed rent.
• Market Rent At FMR: With the market rent at $775, which is slightly below the FMR, the landlord might still find it viable to participate in the Section 8 program, especially if they seek the stability of government-backed rents.
• Market Rent Below FMR: Given that the market rent is below the FMR, Section 8 tenants would pay closer to the market rate, making the property more attractive for such investment.

3) Are 31.5% renters + N/A-day DOM enough demand?

• Yes: A 31.5% rental rate indicates a reasonable level of demand for rentals in the area. However, the lack of Days on Market (DOM) data makes it difficult to assess how quickly properties are rented out. Without this information, landlords must rely on the rental percentage to gauge potential occupancy rates.
• No: If the rental rate is deemed insufficient, landlords may face challenges in finding tenants, even within the Section 8 program. The absence of DOM data complicates this analysis further, suggesting a cautious approach to investing in this ZIP code.
• It Depends: With 31.5% of the population being renters and no available DOM data, the decision hinges on the landlord's tolerance for risk and their ability to attract and retain tenants. High demand doesn't guarantee easy tenancy without knowing the speed at which units are filled.

The decision to invest in ZIP 68632 for Section 8 purposes is contingent upon the landlord's financial situation, risk tolerance, and whether the FMR sufficiently covers their debt service requirements. Market conditions and the ease of filling vacancies are critical considerations.

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.