Location: Dodge County, NE | Metro: Colfax 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 | $820 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,130 | $150,449 | 0.75% | D |
| 3BR | $1,380 | $240,555 | 0.57% | F |
U.S. Census Bureau data (2024)
If you're considering investing in ZIP code 68633 (Dodge, NE) for a Section 8 portfolio, start by assessing whether the Fair Market Rent (FMR) of $960 for the metro area in fiscal year 2026 can cover the debt service on a property valued at $239,137. This is your first gate.
Yes: If the FMR of $960 can indeed clear the debt service, proceed to the next question. The average monthly debt service for a property priced at $239,137 would typically be lower, assuming standard financing terms. For instance, a 30-year fixed-rate mortgage at 5% interest would result in a monthly payment of approximately $1,250. With an FMR of $960, you would need to ensure that the total rental income, including utility allowances and other subsidies, exceeds this amount.
No: If the FMR cannot cover the debt service, then investing in this ZIP code for Section 8 purposes is not financially viable. You must find a property where the FMR can fully support the monthly debt obligations.
The second gate is to determine if the market rent of $892 (as per Census ACS) is above, at, or below the FMR of $960. This will inform how competitive the Section 8 rents are relative to the market.
Above: If the market rent is higher than the FMR, then Section 8 properties might struggle to compete with the private market, leading to potential vacancy issues.
At or Below: If the market rent is equal to or lower than the FMR, Section 8 properties could attract tenants easily, especially since the FMR covers the average market rent.
The third gate evaluates the demand for rental properties. In ZIP 68633, 17.8% of residents are renters, but the days on market (DOM) data is not available. This means we can only rely on the percentage of renters to gauge demand.
It Depends: With 17.8% of residents being renters, there is some demand for rental properties. However, the lack of DOM data makes it difficult to assess how quickly properties are rented out. If the rental market is robust despite the limited data, you could consider investing. Otherwise, the risk of prolonged vacancies might outweigh the benefits.
To summarize, if the FMR of $960 can clear the debt service on a $239,137 property and the market rent of $892 is at or below the FMR, then investing in ZIP 68633 for Section 8 purposes is feasible. However, the demand for rental properties remains uncertain due to the missing DOM data. Evaluate further local market conditions and consult with local real estate agents for a clearer picture before making your investment decision.
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.