Location: Valley County, NE | Metro: Custer 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 | $750 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,040 | $163,587 | 0.64% | D |
U.S. Census Bureau data (2024)
The analysis of ZIP code 68823, located in Burwell, Nebraska, reveals a unique blend of yield and stability that does not perfectly fit into either a high-yield/low-stability flip-style market or a steady-cashflow zone. Instead, it presents an opportunity that lies in between these extremes.
On the yield axis, the Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $960, which is significantly higher than the market rent of $501. This suggests that there is a substantial potential for rental income above the local market average if properties can qualify for Section 8 subsidies. However, the median home value of $266,229 indicates that the initial investment required to enter this market is relatively high compared to the rental income potential. The disparity between the FMR and market rent points towards a scenario where landlords can achieve above-average yields through Section 8 participation, but only with a careful consideration of the property's location and condition.
Moving to the stability axis, the rental market in 68823 shows some mixed signals. With 24.6% of residents being renters, there is a moderate demand for rental housing. Unfortunately, the lack of data on days on market (DOM) makes it challenging to assess the speed at which rental units can be filled. Additionally, the median household income of $61,974 provides insight into the economic health of the area, suggesting that tenants have a reasonable ability to meet their rent obligations. However, this income figure also implies that there could be competition from homeownership, especially considering the median home value. Landlords should expect a stable but not exceptionally robust rental market, with the potential for occasional vacancies due to limited data on DOM.
In conclusion, ZIP code 68823 offers a moderate level of yield enhancement through Section 8 participation, given the difference between FMR and market rents. Its stability is somewhat assured by the moderate rental rate and decent median income, yet the limited data on DOM introduces a degree of uncertainty. Therefore, this area is best classified as a transitional market, suitable for investors willing to balance moderate yields with acceptable levels of stability. It is neither a high-risk/high-reward flip-style market nor a guaranteed steady-cashflow zone, but rather a middle ground where careful selection of properties and tenants can lead to successful investment outcomes.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.