Location: Polk County, NE | Metro: Polk 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 | $730 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $166,504 | 0.61% | D |
| 3BR | $1,210 | $230,782 | 0.52% | F |
U.S. Census Bureau data (2024)
The ZIP code 68651, located in Osceola, Nebraska, presents an interesting scenario when viewed from a renter's perspective. The median household income here is $78,487, which places residents in a moderate financial position. However, the market rate for rent, at $528 according to Census ACS data, is significantly lower than the Fair Market Rent (FMR) set by HUD for the metro area in fiscal year 2026, which stands at $960.
This disparity means that the typical renter in Osceola can comfortably afford the market rate rent without needing to stretch their budget. With a median income of nearly $80,000, even if a household dedicates a reasonable portion of its income to housing, it would still be well within the generally accepted guideline of spending no more than 30% of income on rent. At the current market rate, this translates to approximately 7% of the median income being spent on rent, leaving ample room for other expenses and savings.
However, the gap between the market rate and the HUD FMR also suggests that there is significant potential for landlords to increase rents and still remain within the bounds of affordability as defined by HUD. This could lead to increased competition among landlords who might be inclined to raise rents closer to the $960 FMR threshold to maximize profitability.
For landlords considering whether to accept Section 8 vouchers or focus on cash-paying tenants, the data points to a strategic advantage in both approaches. Accepting vouchers allows landlords to tap into a federal program that guarantees timely payments and can stabilize cash flow, particularly in a market where the income level supports higher rents but the current market rate is lower. On the other hand, focusing on cash-paying tenants provides the flexibility to charge market rates that may rise as competition increases and the local economy adjusts to support higher rental costs.
The takeaway for landlords is clear: while the current market rate is low relative to median income, there is room to grow rents towards the HUD FMR. Landlords should consider the benefits of both voucher and cash-pay strategies, balancing the guaranteed stability of voucher payments against the potential for higher revenue from cash-paying tenants as the market adjusts. This dual approach can help landlords navigate the evolving landscape of Osceola's rental market effectively.
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.