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 | $770 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,460 |
| 5 Bedrooms | $1,694 |
| 6 Bedrooms | $1,897 |
| 7 Bedrooms | $2,049 |
| 8 Bedrooms | $2,151 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,450 | $313,605 | 0.46% | F |
U.S. Census Bureau data (2024)
ZIP code 68635, located within the Butler County, NE metro, presents a unique profile compared to other ZIP codes in the area. The Fair Market Rent (FMR) for ZIP 68635 stands at $990 for fiscal year 2026, which is notably higher than the market rent of $440. This discrepancy suggests that government-subsidized rents are significantly above what the private market offers, indicating a potential sweet spot for landlords participating in the Section 8 program.
The median home value in ZIP 68635 is $230,874, which is lower than the typical home value found in Butler County, NE. This could mean that properties in 68635 are relatively affordable for investors looking to enter the market, especially if they plan to rent out the properties under the Section 8 program.
A key factor in evaluating ZIP 68635 is its renter share, which is 19.4%. This figure is indicative of a moderate level of rental activity, suggesting that while there is demand for rental properties, it is not overwhelmingly high. In comparison to other ZIP codes in Butler County, NE, this renter share might be slightly above average, further supporting the idea that 68635 could be an attractive location for Section 8 properties.
Based on these figures, ZIP 68635 can be classified as a value pocket within the Butler County, NE metro. It offers a combination of below-average home values and a higher-than-average renter share, making it an appealing option for landlords who want to benefit from the Section 8 program without the high property costs seen in premium sub-markets.
To summarize:
The divergence between the FMR and market rent, combined with the lower home values, makes ZIP 68635 a promising value pocket for landlords interested in the Section 8 program.
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.