Location: Adams County, NE | Metro: Hall County, NE HUD Metro FMR Area
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 | $880 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,470 |
| 4 Bedrooms | $1,860 |
| 5 Bedrooms | $2,158 |
| 6 Bedrooms | $2,417 |
| 7 Bedrooms | $2,610 |
| 8 Bedrooms | $2,741 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,180 | $212,845 | 0.55% | F |
| 3BR | $1,470 | $283,905 | 0.52% | F |
| 4BR | $1,860 | $291,833 | 0.64% | D |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 68883 (Wood River, NE) provides insight into the potential returns for landlords and small-portfolio investors. Based on the Fair Market Rent (FMR) for a 2-bedroom apartment set at $940 annually for fiscal year 2024, and the market rent at $861 per month according to the Census ACS data, we can derive two different gross yields.
First, using the FMR of $940 per month, the annualized rental income would be $11,280. This figure represents the maximum allowable rent for Section 8 tenants. Given the median home value in Wood River, NE, is $257,955, the implied gross yield when using the FMR would be approximately 4.37%. The calculation is straightforward: divide the annualized rental income ($11,280) by the median home value ($257,955).
Second, using the market rent of $861 per month, the annualized rental income would be $10,332. This lower figure reflects the actual market conditions and the typical rent that non-Section 8 tenants might pay. The implied gross yield based on market rent would be around 4.01%, calculated similarly by dividing the annualized market rent ($10,332) by the median home value ($257,955).
The gross yield comparison between these two scenarios shows a slight advantage when considering the FMR over the market rent. However, the reality of the situation must also take into account the 15.4% renter density in Wood River, NE. This relatively low percentage suggests that there is a smaller pool of potential renters, which could impact the ability to consistently achieve higher rents.
Furthermore, the N/A-day Days on Market (DOM) indicates that either the data is incomplete or the market is stable enough that properties don't typically spend much time on the market before being rented. This stability could support the use of market rent figures rather than relying solely on the FMR, as it's indicative of what local tenants are willing to pay.
In conclusion, while the FMR offers a slightly better gross yield at 4.37%, the market rent scenario at 4.01% is more realistic given the limited renter base and the stability of the local rental market. Investors should consider these factors when deciding whether to participate in the Section 8 program in Wood River, NE.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.