Location: Rock County, NE | Metro: Brown County, NE
| Unit Size | Monthly FMR |
|---|---|
| Studio | $730 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,390 |
| 5 Bedrooms | $1,612 |
| 6 Bedrooms | $1,805 |
| 7 Bedrooms | $1,949 |
| 8 Bedrooms | $2,046 |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 68714 is centered around the significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2026, the FMR stands at $960, while the Census ACS data indicates that the average market rent is $644. This creates a gap of $316, which translates into a difference of approximately 33% between the two figures.
Given that the FMR exceeds the market rent, landlords and small-portfolio investors can leverage this situation to their advantage. Voucher tenants, who receive rental assistance through the Section 8 program, provide a reliable source of income that aligns closely with the FMR. This makes the ZIP code a prime location for a yield play, where the guaranteed income from voucher tenants can outperform the volatile nature of the open-market rental rates. The consistent cash flow from these tenants can result in higher yields compared to properties rented at the prevailing market rate of $644.
The context of the area further supports this thesis. With 33.2% of residents being renters and a median home value of $149,237, the ZIP code has a stable housing market. Additionally, the median income of $52,031 suggests that a substantial portion of the population would require rental assistance to afford housing at the FMR level. By accepting Section 8 vouchers, landlords can tap into this demand, ensuring occupancy and a steady stream of income that is closer to the FMR of $960 than the lower market rent.
However, it's crucial to note that while the higher income from voucher tenants can be attractive, there are also potential costs associated with housing voucher tenants. These include administrative burdens, inspections, and compliance with HUD regulations. Despite these considerations, the financial benefits of receiving rent at FMR levels can outweigh the additional costs, making it a viable strategy for maximizing returns in ZIP 68714.
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.