Location: Antelope County, NE | Metro: Antelope 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 | $800 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,540 |
| 4 Bedrooms | $1,570 |
| 5 Bedrooms | $1,821 |
| 6 Bedrooms | $2,040 |
| 7 Bedrooms | $2,203 |
| 8 Bedrooms | $2,313 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,110 | $125,527 | 0.88% | C |
| 3BR | $1,540 | $191,432 | 0.8% | C |
| 4BR | $1,570 | $178,640 | 0.88% | C |
U.S. Census Bureau data (2024)
A skeptical investor considering Neligh, NE (ZIP 68756) might raise several concerns regarding the viability of Section 8 investments. These objections can be addressed using the available data.
The first objection is whether the Fair Market Rent (FMR) of $1,090 for the fiscal year 2026 will sufficiently cover the mortgage on a home priced at $179,792. To determine this, we must consider the typical interest rates and loan terms. Assuming a fixed-rate mortgage at an average rate of 4.5%, the monthly payment on a $179,792 home would be approximately $890. Therefore, the FMR of $1,090 would indeed cover the mortgage payment, leaving a surplus of around $200 per month for other expenses such as property taxes, insurance, and maintenance.
The second concern is whether there is enough rental demand in the area, given that only 25.7% of the population are renters. While this percentage suggests a relatively low proportion of renters, it's important to consider the size of the overall population. With a total population of roughly 1,400, this translates to approximately 360 potential renters. This number should be sufficient to support a few rental units, especially if the demand for affordable housing is strong. However, the data does not provide a breakdown of the rental market or the specific demand for Section 8 properties, which leaves some uncertainty.
The third objection pertains to whether voucher payments will keep pace with market rents, which currently stand at $703. The data indicates that the average voucher amount is expected to increase, but it does not specify the exact figure. Given the historical trend of voucher amounts rising slightly slower than market rents, there could be a gap in coverage. Landlords and investors should prepare for potential shortfalls and understand that voucher amounts are adjusted annually based on federal guidelines.
In summary, while the FMR of $1,090 appears adequate to cover the mortgage on a home valued at $179,792, the rental demand at 25.7% of the population is moderate and may vary. Lastly, the relationship between voucher payments and market rents at $703 remains uncertain without more detailed data on future voucher adjustments. Investors should proceed with caution and ensure they have a thorough understanding of local market conditions before committing to a Section 8 investment in Neligh, NE.
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.