Location: Knox County, NE | Metro: Antelope County, NE
| Unit Size | Monthly FMR |
|---|---|
| Studio | $790 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
U.S. Census Bureau data (2024)
A landlord considering investing in ZIP code 68764 for Section 8 properties should follow this decision tree:
1) Does FMR $990 (metro FY 2026) clear debt service on a $221,574 property?
If the landlord can secure a mortgage rate that allows the Fair Market Rent (FMR) of $990 to cover all costs including principal, interest, taxes, and insurance, then the answer is yes. For a property valued at $221,574, typical debt service would need to be less than $990 per month to ensure profitability.
2) Is market rent $814 (Census ACS) above, at, or below FMR?
The market rent at $814 is below the FMR of $990. This means landlords who qualify for Section 8 tenants can charge higher rents compared to the average market rate, increasing their chances of covering operational costs and making a profit.
3) Are 16.5% renters + N/A-day DOM enough demand?
The percentage of renters at 16.5% indicates a moderate level of demand. However, the lack of data on Days on Market (DOM) makes it difficult to assess the speed at which rental units are filled. Without this information, landlords must rely on other indicators such as population growth and employment rates to gauge potential tenant interest.
Decision Tree Outcome:
If Yes to 1 and 2: There is strong potential for profitability in Section 8 properties in ZIP 68764. The higher FMR compared to market rent provides a buffer for landlords to manage operational expenses effectively.
If Yes to 1 but No to 2: The decision becomes more complex. If market rent is below FMR, landlords might struggle to find non-Section 8 tenants willing to pay the higher rate, which could limit the property's appeal. However, if the demand for Section 8 housing is high, landlords could still benefit from the program.
If It Depends on 3: The lack of DOM data introduces uncertainty. Landlords should investigate further into local rental market dynamics, such as vacancy rates and competition. Additionally, understanding the specific needs and availability of Section 8 vouchers in the area will help determine if there is sufficient demand to justify investment.
If No to 1: Investment in ZIP 68764 for Section 8 properties is not advisable. The FMR does not sufficiently cover the debt service for a property priced at $221,574, leading to financial losses.
In summary, landlords must carefully evaluate the financials and local rental market conditions before deciding to invest in ZIP 68764 for Section 8 properties. The favorable comparison between FMR and market rent is a positive sign, but the viability ultimately hinges on securing a mortgage that aligns with these figures and assessing the local demand accurately.
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.