Location: Sherman County, NE | Metro: Howard County, NE HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $750 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
U.S. Census Bureau data (2024)
A skeptical investor considering Section 8 properties in ZIP 68820 might raise several concerns. Let's address these with the available data.
The Fair Market Rent (FMR) for ZIP 68820 in fiscal year 2024 is set at $950. To determine if this will cover the mortgage on a home priced at $286,313, we must consider the typical mortgage rates and terms. Assuming a 30-year fixed-rate mortgage at an average rate of 4.5%, the monthly payment would be approximately $1,425. This means that the $950 FMR does not fully cover the mortgage payment, leaving a shortfall of $475 per month. However, this calculation does not include potential tax benefits and other incentives that can offset some of the costs.
The rental demand in ZIP 68820 stands at 16.3%. This figure represents the percentage of households that are renters. While it may seem low compared to national averages, it still indicates a significant portion of the population seeking rental housing. For investors, this means there is a base level of demand, though it may require careful tenant selection and possibly targeting those who qualify for assistance programs.
The current market rent for ZIP 68820 is $675. Given that the FMR is higher at $950, landlords participating in the Section 8 program should expect to receive the voucher amount which typically aligns with the FMR. If the voucher amount remains consistent with the FMR, it should adequately cover the market rent. However, future adjustments to the voucher amounts depend on HUD's annual updates and local housing authority policies. Investors should monitor these changes closely to ensure they remain financially viable.
While the data provides a snapshot of the financial landscape in ZIP 68820, it is important to note that external factors such as economic shifts and policy changes can impact the long-term viability of Section 8 investments. Continuous monitoring of trends and staying informed about any regulatory updates are crucial for maintaining profitability.
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.