Location: Keya Paha County, NE | Metro: Keya Paha 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 | $730 |
| 1 Bedroom | $780 |
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,250 | $315,356 | 0.4% | F |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP 68778 reveals a significant gap between the Fair Market Rent (FMR) set by HUD and the actual market rent. For fiscal year 2026, the FMR is established at $960, while the current market rent stands at $817 according to Census ACS data. This creates a gap of $143, which represents approximately a 17.5% difference.
Given that the FMR exceeds the market rent, this ZIP code presents a unique opportunity for landlords and small-portfolio investors. Voucher tenants, who are guaranteed a certain level of subsidy up to the FMR, can be seen as a stable source of income. Landlords can charge the higher FMR rate without risking vacancy, as the government will cover the difference between the actual market rent and the FMR. This makes the area a yield play, where the guaranteed payment ensures a higher return on investment compared to charging the lower market rent.
To put this into context, ZIP 68778 has an 18.3% rental population, indicating a moderate demand for rental properties. The median home value in the area is $248,499, suggesting a mix of homeowners and renters. With a median income of $61,500, the majority of residents may find it challenging to afford market-rate rents, making the Section 8 program particularly relevant.
However, it's important to note that while the FMR provides a higher rent guarantee, there are administrative costs associated with accepting housing vouchers. These include the time and effort required to manage the voucher process, which can sometimes lead to delays in rent payments. Despite these costs, the financial benefits of receiving a guaranteed rent that is above the current market rate can outweigh the drawbacks, especially in an area where the market rent is significantly lower than the FMR.
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.