Location: Phelps County, NE | Metro: Buffalo County, NE
| Unit Size | Monthly FMR |
|---|---|
| Studio | $870 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,770 |
| 5 Bedrooms | $2,053 |
| 6 Bedrooms | $2,299 |
| 7 Bedrooms | $2,483 |
| 8 Bedrooms | $2,607 |
U.S. Census Bureau data (2024)
The rental market in ZIP code 68845 presents a mixed landscape for both renters and landlords. Given the median household income of $76,978, the market rate for rentals, known as the ZORI (Zillow Observed Rental Index), stands at $1,465. This suggests that the average household could afford the market rate, assuming they allocate a reasonable portion of their income towards housing.
However, when considering the federal payment standard for Section 8 vouchers, which is set at $1,010 for the metro area in fiscal year 2026, there is a significant disparity between what the market demands and what the government subsidizes. The difference of over $450 per month highlights the affordability gap that renters face, especially those relying on government assistance.
In ZIP 68845, where 40.8% of the 20,536 residents are renters, this gap has implications for the competition among landlords. Landlords who accept Section 8 vouchers will have a larger pool of potential tenants but must be prepared to operate at a lower profit margin compared to those who seek out cash-paying tenants willing to pay the market rate. Conversely, landlords who do not accept vouchers may find themselves competing in a smaller, albeit potentially more lucrative, market segment.
The takeaway for landlords is clear: accepting Section 8 vouchers can stabilize occupancy rates and provide a steady income stream, albeit at a lower monthly rate. Cash-paying tenants offer higher rental income but come with the risk of increased vacancy if the market rate becomes too high for many households to bear. Landlords should consider their long-term goals and the local rental dynamics before deciding on their strategy.
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.