Location: Custer County, NE | Metro: Buffalo County, NE
| Unit Size | Monthly FMR |
|---|---|
| Studio | $830 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 68866, located in Custer County, Nebraska, reveals several key insights for landlords and small-portfolio investors.
The first question to address is whether the rent math works. The Fair Market Rent (FMR) for the area, set at $960 for the fiscal year 2026, is significantly higher than the current market rent of $738 based on Census ACS data. This suggests that landlords can potentially increase their rental income if they align their rents with the FMR, though it may require improvements or upgrades to properties to justify the higher rates.
Regarding the affordability of acquisitions, the median home value in ZIP 68866 stands at $367,962. While this figure indicates a moderate investment cost, the lack of available data on days on market (DOM) and the percentage of homes requiring price cuts makes it difficult to assess how quickly and at what price point homes can be sold. Investors should proceed with caution and conduct further research into local real estate trends before making significant purchases.
The tenant demand in ZIP 68866 is also a critical factor. With a total population of 1,168 and a renter share of 15.8%, the pool of potential tenants is relatively small. However, given the rural setting, this share could represent a stable and reliable group of renters. Landlords must ensure their properties meet the needs of these tenants to maintain occupancy levels.
In conclusion, while the potential exists for landlords to raise rents to match the FMR, the limited tenant base and uncertain real estate market dynamics pose challenges. Investors should focus on optimizing property management practices and possibly targeting specific segments of the rental market to maximize returns. The median home value offers a reasonable entry point, but thorough due diligence is necessary to navigate the local real estate landscape effectively.
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.