Location: Merrick County, NE | Metro: Merrick County, NE HUD Metro FMR Area
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 | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,660 |
| 5 Bedrooms | $1,926 |
| 6 Bedrooms | $2,157 |
| 7 Bedrooms | $2,330 |
| 8 Bedrooms | $2,447 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $136,139 | 0.74% | D |
| 3BR | $1,410 | $214,984 | 0.66% | D |
| 4BR | $1,660 | $244,154 | 0.68% | D |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 68826 (Central City, NE, Merrick County) reveals that the HUD Fair Market Rent (FMR) of $870 for FY 2024 is significantly higher than the average market rent of $678 based on Census ACS data. This suggests that voucher tenants will likely provide positive cash flow at the FMR rate, given that they can pay up to $870 per month, which exceeds the typical market rent.
To further analyze the investment potential, consider the median home value in the area, which stands at $201,163. The rent-to-price ratio is approximately 0.4%, calculated by dividing the annualized market rent ($678 * 12 = $8,136) by the median home value. This low ratio indicates that rental income represents a small portion of the property's value, suggesting that appreciation might be a stronger driver of returns than cash flow.
The data also shows that there is an N/A-day median Days on Market (DOM), which means that properties are generally selling quickly in this area. Additionally, the price-cut share is 0.2%, indicating that sellers rarely need to lower their asking price to attract buyers. These factors point towards a stable housing market where property values are unlikely to fluctuate widely.
In summary, while voucher tenants will provide positive cash flow at the HUD FMR rate, the low rent-to-price ratio and quick sales suggest that appreciation and stability are the strongest angles for investors in ZIP code 68826.
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.