Location: Custer County, NE | Metro: Custer County, NE
| Unit Size | Monthly FMR |
|---|---|
| Studio | $930 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,280 |
| 3 Bedrooms | $1,770 |
| 4 Bedrooms | $1,990 |
| 5 Bedrooms | $2,308 |
| 6 Bedrooms | $2,585 |
| 7 Bedrooms | $2,792 |
| 8 Bedrooms | $2,932 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 68856, located in Custer County, Nebraska, reveals several key points regarding its viability for rental investment.
The rent math does not work favorably in this area. The Fair Market Rent (FMR) for the metro region, set at $1,220 for fiscal year 2026, is notably higher than the actual market rent reported by the Census ACS, which stands at $983. This indicates that while the government's benchmark suggests higher rents, the local market is not supporting these levels, leading to a potential mismatch between landlord expectations and tenant willingness to pay.
Acquisition appears to be relatively affordable in ZIP 68856, with a median home value of $169,833. However, the lack of data on days on market (DOM) and the percentage of homes that have had their prices cut (N/A) makes it difficult to assess the current state of the housing market. Landlords should consider these factors when evaluating the cost and timing of acquiring properties.
Tenant demand is present but limited in this ZIP code. With a total population of 715, only 22.1% are renters, indicating a smaller pool of potential tenants. This could pose challenges for landlords seeking to fill vacancies quickly, especially if the rental market is tight.
Verdict: While the acquisition costs in ZIP 68856 are reasonably low, the discrepancy between the FMR and the actual market rent suggests that landlords might struggle to achieve desired rental income levels. Additionally, the limited tenant demand due to a low renter share means that competition for tenants will likely be fierce. Landlords and small-portfolio investors should proceed with caution, carefully considering these factors before making any investment decisions in this area.
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.