Location: Colfax 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 | $920 |
| 1 Bedroom | $1,060 |
| 2 Bedrooms | $1,270 |
| 3 Bedrooms | $1,510 |
| 4 Bedrooms | $1,670 |
| 5 Bedrooms | $1,937 |
| 6 Bedrooms | $2,169 |
| 7 Bedrooms | $2,343 |
| 8 Bedrooms | $2,460 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,270 | $194,312 | 0.65% | D |
| 3BR | $1,510 | $246,042 | 0.61% | D |
| 4BR | $1,670 | $276,766 | 0.6% | D |
U.S. Census Bureau data (2024)
Investors often question the viability of investing in ZIP 68661, particularly regarding the Federal Market Rent (FMR) and its ability to cover mortgages and meet renter demand.
Objection 1: Will FMR $1,120 (metro FY 2026) cover the mortgage on a $229,534 home?
The FMR of $1,120 in Schuyler, NE, for fiscal year 2026 can indeed support a mortgage on a home priced at $229,534. Assuming a 30-year fixed-rate mortgage with an interest rate of around 4%, the monthly mortgage payment would be approximately $1,090. This amount is very close to the FMR, indicating that rental income at the FMR level could nearly cover the mortgage costs. However, it's important to consider additional expenses such as property taxes, insurance, maintenance, and utilities, which might require the landlord to contribute extra funds.
Objection 2: Is there enough renter demand at 28.0%?
A renter occupancy rate of 28.0% might seem low compared to urban areas, but it's crucial to understand the local context. In ZIP 68661, this percentage translates to a significant number of potential tenants given the size of the housing stock. The data does not provide a direct measure of tenant demand, but the current rate suggests that there is a steady pool of renters. Landlords should focus on the quality of their properties and the attractiveness of their location to draw in tenants. Additionally, the smaller portfolio size allows for more personalized management, potentially increasing occupancy rates.
Objection 3: Will vouchers keep pace with $1,025 market rents?
Vouchers in Schuyler, NE, are expected to cover a substantial portion of the $1,025 market rent, but they may not fully match it. The Housing Choice Voucher program adjusts its payments based on local market conditions, and while the FMR is set at $1,120, actual voucher amounts can vary. It's advisable for landlords to check the current average voucher payment in ZIP 68661 to ensure it aligns with their rental pricing. If the voucher amount is lower than the market rent, landlords can either adjust their rent or seek additional sources of income to make up the difference.
To conclude, while the data provides insights into covering mortgage costs and meeting renter demand, it does not offer a complete picture of voucher trends. Investors should stay informed about local adjustments to the voucher program to manage their expectations effectively.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.