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 | $1,090 |
| 1 Bedroom | $1,120 |
| 2 Bedrooms | $1,470 |
| 3 Bedrooms | $2,040 |
| 4 Bedrooms | $2,400 |
| 5 Bedrooms | $2,784 |
| 6 Bedrooms | $3,118 |
| 7 Bedrooms | $3,367 |
| 8 Bedrooms | $3,535 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,040 | $335,764 | 0.61% | D |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,020 for ZIP 68827 will sufficiently cover the mortgage on a home valued at $310,974. This concern is valid given that the typical mortgage payment for a home of this value could easily exceed $1,020, depending on interest rates and loan terms. Investors should conduct a thorough financial analysis to determine if the rental income aligns with their mortgage obligations.
The investor may also doubt the level of renter demand at 14.7%. While this percentage suggests a modest rental market, it does not provide a complete picture. The demand for rentals in ZIP 68827 could be influenced by factors such as employment opportunities, proximity to larger urban centers, and the overall cost of living. Despite the low percentage, the town's affordability and friendly community could attract renters who are looking for a quieter, less expensive lifestyle.
Another objection could be whether Housing Choice Vouchers will keep pace with the market rents of $1,052. The data does not explicitly state the trend or rate of increase for voucher amounts. However, it is important to note that voucher amounts are typically adjusted annually based on the local market conditions. If the local market continues to see steady increases, it is likely that voucher amounts will also rise to maintain affordability for tenants.
In conclusion, while the data raises valid concerns regarding the mortgage coverage, renter demand, and voucher sufficiency, it is essential to consider the broader context of ZIP 68827. The town's low cost of living and friendly atmosphere may offset some of these risks, but careful due diligence is still required before investing in the area.
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.