Location: Wayne County, NE | Metro: Dixon 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 | $740 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $194,300 | 0.52% | F |
| 3BR | $1,390 | $246,461 | 0.56% | F |
| 4BR | $1,700 | $269,635 | 0.63% | D |
| 5BR | $1,972 | $353,480 | 0.56% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate scenario for ZIP 68787 (Wayne, NE) can be analyzed using the Fair Market Rent (FMR) and the Zillow Observed Rent Index (ZORI) for a 2-bedroom apartment. The annualized FMR for a 2BR unit is $910 multiplied by 12 months, equating to $10,920 per year. In contrast, the market rent according to ZORI is $1,382 per month, or $16,584 annually.
To derive the implied gross yield, we divide these annual rents by the median home value of $233,243. For the FMR scenario, the gross yield is calculated as follows:
$10,920 / $233,243 = 0.0468 or approximately 4.68%
For the market rent scenario using ZORI, the calculation is:
$16,584 / $233,243 = 0.0711 or approximately 7.11%
The gross yield comparison clearly shows that the market rent scenario offers a significantly higher return compared to the FMR scenario. However, the choice between these two yields depends heavily on the local rental market conditions and tenant preferences.
Given the 51.3% renter density in Wayne, NE, it suggests a substantial portion of the population relies on rental housing, which could support higher rental rates. Yet, the N/A-day Days on Market (DOM) indicates an incomplete dataset, possibly due to low turnover or limited rental listings, making it challenging to assess the true market dynamics.
In conclusion, while the market rent scenario presents a more attractive gross yield at 7.11%, the uncertainty around DOM and the reliance on government-subsidized tenants under the Section 8 program might make the 4.68% yield more realistic. Landlords and investors must weigh the stability and demand factors before deciding on the rental strategy for properties in ZIP 68787.
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.