Location: Knox County, NE | Metro: Knox County, NE
| Unit Size | Monthly FMR |
|---|---|
| Studio | $740 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,220 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 68724 reveals key insights for potential investment in the rental market.
The first question addresses whether the rent math works. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,030, which is significantly higher than the current market rent of $635 based on Census ACS data. This discrepancy suggests that there is room for increasing rents to align with FMR standards, but landlords must be cautious about setting prices too high, as it could deter potential tenants.
Regarding the affordability of acquisitions, the data indicates that the median home value is not available, nor are the days on market (DOM) and the percentage of homes with price cuts. Without these figures, it's challenging to assess the direct costs and market dynamics of acquiring properties in this ZIP code. However, the absence of such data might imply a less active market, which could be advantageous for those looking to purchase at potentially lower prices.
The third question concerns tenant demand. With a population of 276 and a renter share of 14.3%, the number of potential renters is relatively small, estimated at around 39 individuals. This limited pool of tenants means that competition among rental units will likely be intense, and landlords need to ensure their properties offer competitive value to attract and retain tenants.
In conclusion, while there is an opportunity to increase rental income to match the FMR of $1,030, the small number of potential renters in ZIP 68724 poses a significant challenge. The lack of detailed acquisition cost data complicates a full assessment of property affordability, but the existing market rent of $635 provides a starting point. Landlords should focus on providing high-quality, competitively priced rentals to meet the modest demand. Given the limited scale of the rental market here, success will depend heavily on property management skills and the ability to maintain occupancy rates amidst a low supply of potential tenants.
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.