Location: Platte County, NE | Metro: Madison County, NE
| Unit Size | Monthly FMR |
|---|---|
| Studio | $730 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,380 |
| 5 Bedrooms | $1,601 |
| 6 Bedrooms | $1,793 |
| 7 Bedrooms | $1,936 |
| 8 Bedrooms | $2,033 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 68644 provides valuable insights into potential investment opportunities. The Federal Market Rent (FMR) for a two-bedroom apartment is set at $960 per month for fiscal year 2026, based on metropolitan area data. This translates to an annualized FMR of $11,520.
When comparing this to the median home value of $389,683, the implied gross yield for a property rented under the Section 8 program can be calculated. For a $389,683 home, the annualized FMR would result in a gross yield of approximately 3%. This is derived from the formula: Gross Yield = Annual Rent / Property Value.
On the other hand, the market rent for a two-bedroom apartment in ZIP 68644 is reported at $835 per month according to the Census ACS. Annualizing this figure gives us $10,020 per year. Using the same median home value, this scenario yields a gross rental income of about 2.6%, slightly lower than the FMR scenario.
Given that 28.9% of residents in ZIP 68644 are renters, it's important to consider the likelihood of finding tenants who qualify for the Section 8 program. However, the lack of data regarding the number of days on market (N/A DOM) suggests that there might be challenges in accurately predicting how quickly a property could be leased under either program.
In terms of realism, the FMR scenario appears more favorable due to its higher gross yield. However, landlords should be aware that the actual net operating income (NOI) will depend on various factors such as maintenance costs, vacancy rates, and management fees. Despite these considerations, the higher monthly payment under Section 8 ensures a more stable cash flow compared to fluctuating market rents.
Therefore, while the market rent scenario offers a slightly lower gross yield, the FMR scenario provides a more predictable and potentially less risky income stream, making it a more attractive option for long-term investments in ZIP 68644.
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.