Location: Buffalo 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 analysis of the Section 8 cap-rate picture for ZIP code 68849 is limited due to incomplete data. However, based on the available information, we can provide some insights.
The Fair Market Rent (FMR) for a 2-bedroom apartment in ZIP 68849 for fiscal year 2026 is set at an annualized rate of $1,010 per month. This figure is derived from the metro area FMR standards and serves as a guideline for rental assistance under the Section 8 program. Despite this, the exact market rent for the area is currently not available, which makes direct comparisons challenging.
With the median home value also not provided, it's difficult to calculate a precise gross yield for the market rent scenario. However, using the Section 8 FMR, if we assume a typical property value in the area, we can infer that the gross yield would be relatively low compared to other investment opportunities. For instance, if a property were valued at $200,000, the annual rental income from Section 8 would amount to $12,120, implying a gross yield of about 6.06%. This calculation assumes no vacancies and does not account for expenses such as maintenance, property taxes, or insurance.
The lack of market rent data prevents us from making a concrete comparison between the gross yields of Section 8 versus market rent. However, given that the FMR is typically lower than market rates, it stands to reason that the gross yield from market rents would be higher, assuming the median home value remains constant.
The renter density and days on market (DOM) are also unspecified, which are critical factors in assessing the viability of rental investments. High renter density and shorter DOM periods generally indicate a stronger rental market, potentially favoring market rent over Section 8 contracts. Conversely, lower renter density and longer DOM periods might suggest a more stable but less lucrative market, where Section 8 could offer a reliable, albeit lower, gross yield.
In conclusion, while the Section 8 FMR provides a baseline for rental income, the absence of market rent data and median home values limits our ability to give a comprehensive cap-rate analysis. The gross yield from Section 8, at approximately 6.06%, is illustrative but requires context from the broader real estate market to determine its attractiveness relative to market rent scenarios.
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.