Location: Sherman County, NE | Metro: Sherman 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 | $740 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,610 |
| 5 Bedrooms | $1,868 |
| 6 Bedrooms | $2,092 |
| 7 Bedrooms | $2,259 |
| 8 Bedrooms | $2,372 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,020 | $129,006 | 0.79% | D |
| 3BR | $1,410 | $198,702 | 0.71% | D |
| 4BR | $1,610 | $195,214 | 0.82% | C |
U.S. Census Bureau data (2024)
The potential risks for a first-time Section 8 landlord in ZIP code 68853, Loup City, NE, include significant tenant turnover. The market rent of $817 is notably lower than the Fair Market Rent (FMR) of $960 for the metro area, which could lead to tenants seeking higher-quality housing outside the program. This discrepancy highlights the challenge of attracting and retaining tenants who might prefer non-subsidized properties.
Vacancy exposure is another concern. With an average Days on Market (DOM) that is currently unavailable, it's difficult to predict how long a unit might remain vacant. In areas where rental listings take longer to fill, the risk of extended vacancies increases, potentially impacting cash flow.
The deferred maintenance risk is also present. Given the typical home value of $168,672 and the median household income of $54,674, landlords must be prepared to handle maintenance costs that tenants under the Section 8 program may not have the financial capacity to cover. Landlords should budget for regular upkeep to ensure the property remains in good condition.
However, these risks are somewhat mitigated by the high renter share in the area. At 30.3%, there is a significant number of renters, which typically correlates with a higher demand for Section 8 vouchers. This dense population of renters can provide a steady stream of applicants, reducing the likelihood of prolonged vacancies.
In conclusion, the overall risk for a first-time Section 8 landlord in ZIP 68853, Loup City, NE, is moderate. While challenges such as tenant turnover and deferred maintenance exist, the high renter share offers a buffer against some of these risks.
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.