Location: Wayne County, NE | Metro: Cedar 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 | $780 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,790 |
| 5 Bedrooms | $2,076 |
| 6 Bedrooms | $2,325 |
| 7 Bedrooms | $2,511 |
| 8 Bedrooms | $2,637 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,360 | $312,524 | 0.44% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 68771 within the Wayne County, NE metro area reveals several key insights for landlords and small-portfolio investors.
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 $1,020. However, the current market rent, according to Census ACS data, stands at $860. This indicates that the market rent is below the FMR, suggesting that while rents could potentially be increased to meet the FMR, doing so might not be feasible given the current economic conditions and rental market dynamics in the area.
Moving on to the affordability of acquisitions, the median home value in ZIP 68771 is $213,205. Unfortunately, the data does not provide the number of days on market (DOM) or the percentage of homes that required a price cut to sell. Without these metrics, it's challenging to assess how competitive the housing market is and if properties are selling quickly or at their listed prices. However, the median home value suggests that property acquisition costs are relatively stable and not excessively high, which can be beneficial for investors looking to purchase properties without facing steep competition or rapidly rising prices.
The third point concerns tenant demand. The ZIP code has a population of 1,412, with 22.7% of residents being renters. This translates to approximately 320 potential tenants in the area. Given the smaller population size, the pool of renters is limited, but it still represents a significant portion of the total population. It's important to consider the local job market and economic stability to gauge whether this demand will sustain over time.
Verdict: While the rent math does not currently align with the FMR, indicating a potential opportunity for modest rent increases, the acquisition cost is reasonable at $213,205. Tenant demand is present, though limited by the small population size. Investors should focus on understanding the local economy and ensuring that rental properties are priced competitively to attract the available 22.7% of renters. This ZIP code offers a balanced environment for those willing to conduct thorough due diligence and manage expectations regarding rental income growth.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.