Location: Hamilton County, NE | Metro: Clay 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 | $760 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,560 |
| 5 Bedrooms | $1,810 |
| 6 Bedrooms | $2,027 |
| 7 Bedrooms | $2,189 |
| 8 Bedrooms | $2,298 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,060 | $190,387 | 0.56% | F |
| 3BR | $1,380 | $267,492 | 0.52% | F |
| 4BR | $1,560 | $334,039 | 0.47% | F |
| 5BR | $1,810 | $401,927 | 0.45% | F |
U.S. Census Bureau data (2024)
Aurora, NE, located in ZIP code 68818, presents a strategic opportunity for landlords and small-portfolio investors looking to balance their Section 8 portfolios effectively. This area serves primarily as a cash-flow anchor. The rationale behind this classification lies in the significant spread between the Fair Market Rent (FMR) for the Hamilton County, NE metro area, which is set at $1,010 for fiscal year 2026, and the current market rent of $732. This discrepancy indicates that properties in Aurora can be rented out at rates higher than the market average when participating in the Section 8 program.
The median home value in Aurora is $269,669, which is relatively low compared to many other areas. This makes it an attractive option for investors who want to secure properties at a lower initial cost while benefiting from the higher rental rates supported by the Section 8 program. The difference between the FMR and market rent ensures a steady and reliable cash flow, crucial for maintaining financial stability in a landlord's portfolio.
While the 0.3% price-cut share and the median income of $81,045 might suggest some potential for appreciation and diversification, the primary focus should be on the cash flow benefits. The low price-cut share implies that there is minimal competition among sellers willing to reduce their asking prices, indicating a stable property market. However, the median income figure does not directly correlate to the success of a Section 8 investment, as the program's rents are based on the FMR rather than local income levels.
The 18.8% renter share in Aurora is another factor that supports its role as a cash-flow anchor. With nearly one-fifth of residents being renters, there is a substantial demand for affordable housing, which aligns well with the goals of the Section 8 program. This high renter share ensures that the properties will likely remain occupied, further securing the cash flow for the investor.
In summary, ZIP 68818 in Aurora, NE, is best suited as a cash-flow anchor within a Section 8 portfolio strategy. The combination of a favorable FMR-to-market rent spread, a manageable median home value, and a robust renter share all contribute to creating a dependable source of income for landlords and small-portfolio investors.
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.