Location: Polk 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 | $760 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,560 |
| 5 Bedrooms | $1,810 |
| 6 Bedrooms | $2,027 |
| 7 Bedrooms | $2,189 |
| 8 Bedrooms | $2,298 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,050 | $170,113 | 0.62% | D |
| 3BR | $1,320 | $250,852 | 0.53% | F |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in ZIP code 68662 in Shelby, NE, under the Section 8 program are significant. First, tenant turnover is a critical concern. At a market rent of $855, the property would be below the Fair Market Rent (FMR) of $1,070 for FY 2026, which is set for the metro area. This discrepancy suggests that tenants might prefer higher-quality housing outside of the Section 8 program, leading to frequent turnover and associated costs.
Vacancy exposure is another issue. The Days on Market (DOM) data is currently unavailable, indicating uncertainty about how quickly properties can be filled. In areas where DOM is high, the risk of extended vacancy periods increases, reducing cash flow and profitability.
Deferred maintenance is also a risk. With a typical home value of $221,171 and a median income of $89,706, many residents may struggle to afford necessary repairs and improvements. This financial strain can lead to properties deteriorating faster than expected, requiring additional investments from landlords to meet the standards set by the Section 8 program.
However, these risks must be weighed against the high concentration of renters in the area. A 17.3% renter share suggests a robust demand for rental properties, particularly those that accept Section 8 vouchers. High renter density often translates into a steady stream of potential tenants, mitigating some of the risks associated with vacancy and turnover.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 68662 in Shelby, NE, is moderate. While there are significant challenges related to tenant turnover, vacancy exposure, and deferred maintenance, the high renter share provides a buffer against these issues.
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.