Location: Buffalo County, NE | Metro: Buffalo County, NE
| Unit Size | Monthly FMR |
|---|---|
| Studio | $840 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
U.S. Census Bureau data (2024)
The ZIP code 68861 presents several challenges for landlords considering Section 8 investments. Firstly, tenant turnover is a significant risk due to the disparity between the market rent and the Fair Market Rent (FMR) set at $990 for FY 2026, which may not cover the actual costs of maintaining properties at market standards. This can lead to financial strain on landlords who must balance the subsidized rent against maintenance and operational expenses.
Vacancy exposure is another concern. With an undefined number of days on the market (DOM), it's difficult to predict how quickly units might fill once they become vacant. This uncertainty can translate into periods where the property generates no income, impacting cash flow negatively. Additionally, the deferred maintenance exposure is substantial. The median income in the area is $39,792, which does not correlate directly with a typical home value, suggesting that many tenants may not have the means to maintain properties beyond basic needs. This could result in landlords facing higher-than-average repair and maintenance costs over time.
Despite these risks, there is a silver lining. The renter share in ZIP 68861 is 13.3%, indicating a relatively high concentration of renters. High renter density often translates to increased demand for housing vouchers, which can be beneficial for landlords willing to participate in the Section 8 program. This demand helps ensure that there is a pool of potential tenants who are interested in renting through the program, reducing the likelihood of long-term vacancies.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.