Location: Merrick County, NE | Metro: Howard County, NE HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $870 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,610 |
| 4 Bedrooms | $1,920 |
| 5 Bedrooms | $2,227 |
| 6 Bedrooms | $2,494 |
| 7 Bedrooms | $2,694 |
| 8 Bedrooms | $2,829 |
U.S. Census Bureau data (2024)
The ZIP code 68816, located in Merrick County, NE, serves as an ideal cash-flow anchor within a Section 8 portfolio strategy. The Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $950 for a one-bedroom unit. This figure is critical when assessing the viability of properties under the Section 8 program.
Despite the lack of specific market rental data for ZIP 68816, the significant spread between the FMR and the market rent can be inferred from the median home value of $318,741. This high median home value suggests that the local rental market is likely above the FMR, making it a strong candidate for cash flow stability.
As a cash-flow anchor, ZIP 68816 offers several advantages. Firstly, the guaranteed rental income from the Section 8 program ensures steady cash flow, which is crucial for maintaining financial health and covering operational costs. Secondly, the low vacancy rates typical in areas with a strong tenant base contribute to consistent income streams.
Additionally, the ZIP code's characteristics support its role as a cash-flow anchor. With a 36.1% renter share, there is a substantial demand for rental properties. The median income of $61,685 indicates that tenants have sufficient financial capacity to meet their obligations, reducing the risk of default.
In conclusion, ZIP 68816 stands out as a reliable cash-flow anchor due to the favorable spread between the FMR and implied market rents, coupled with a stable tenant population and adequate income levels. Landlords and small-portfolio investors should consider this ZIP code as a key component of their Section 8 investment strategies.
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.