Section 8 Fair Market Rent (FMR) for ZIP 68874 - 2027

Location: Loup County, NE | Metro: Custer County, NE

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$730
1 Bedroom	$790
2 Bedrooms	$1,010
3 Bedrooms	$1,410
4 Bedrooms	$1,590
5 Bedrooms	$1,844
6 Bedrooms	$2,065
7 Bedrooms	$2,230
8 Bedrooms	$2,342

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

821

Median Household Income

$60,139

Housing Units

461

Renter Percentage

22.9%

Occupancy Rate

81.3%

Renter Occupied

The median income in ZIP code 68874 stands at $60,139, which makes it challenging for households to afford the market rate rent of $631 per month based on Census ACS data. This indicates that the typical renter in this area is already struggling to meet the current rental costs, let alone any increases.

Comparatively, the Fair Market Rent (FMR) set at $1,090 for metro FY 2026 is significantly higher than the actual market rate. This discrepancy highlights the substantial gap between what renters can afford and what the government considers a fair market rate for housing assistance programs such as Section 8 vouchers.

With 22.9% of the 821 residents being renters, the competition among landlords in ZIP 68874 is likely to be intense. Given the financial constraints of the average renter, landlords must carefully consider their pricing strategies to attract tenants without undervaluing their properties.

For landlords contemplating whether to accept Section 8 vouchers or focus on cash-paying tenants, the data suggests a nuanced approach. While vouchers offer a guaranteed payment of $1,090, which exceeds the current market rate, they also come with additional administrative burdens and potential tenant selection limitations. On the other hand, relying solely on cash-paying tenants means competing in a market where the median income is only slightly above the rent threshold, making affordability a key concern.

Analysis:

Voucher Strategy: Accepting vouchers ensures a steady income stream that covers the property's value and potentially more. However, landlords must weigh this against the complexities of working with housing authorities and the possible impact on tenant turnover rates.
Cash-Pay Strategy: Attracting cash-paying tenants could be more straightforward but might require setting rents below the FMR to remain competitive. This strategy risks undervaluing the property and could limit profit margins.

The takeaway for landlords is that both strategies have their merits and challenges. Accepting vouchers guarantees higher rent payments but introduces bureaucratic processes. Opting for cash-paying tenants keeps operations simpler but demands careful pricing to stay within the budget of local renters. Landlords should consider their tolerance for administrative overhead and their ability to manage lower rents when deciding on their approach.

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.