Location: Phelps County, NE | Metro: Phelps County, NE
| Unit Size | Monthly FMR |
|---|---|
| Studio | $730 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,670 |
| 5 Bedrooms | $1,937 |
| 6 Bedrooms | $2,169 |
| 7 Bedrooms | $2,343 |
| 8 Bedrooms | $2,460 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 68923 presents a clear picture when comparing the annualized Fair Market Rent (FMR) for a two-bedroom apartment against the median home value. The annualized FMR for a two-bedroom unit is $960 per month, based on the metro rate for fiscal year 2026. However, the median home value in this area is not available, which complicates the direct comparison to market rents.
To derive the cap-rate, we must first understand the gross yield, which is the annual rental income divided by the property's value. In the case of the Section 8 scenario, using the $960 monthly FMR, the annual rental income would be $11,520. Without the median home value, we cannot calculate an exact cap-rate, but we can infer that the gross yield would be relatively low, considering typical home values in similar areas.
Given the lack of data on market rents and median home values, it is challenging to provide a precise comparison. However, the 5.3% renter density suggests a lower demand for rentals compared to owner-occupied homes. This implies that landlords might face challenges in finding tenants willing to pay market rates, making the Section 8 program a more stable option despite the lower gross yield.
The days on market (DOM) figure is also not available, which would typically help in understanding how quickly properties are rented out. However, with a known renter density, it is reasonable to assume that finding tenants through the Section 8 program would be faster and more reliable than waiting for market-rate renters, especially in a low-density rental market.
In conclusion, while the exact cap-rate cannot be determined due to missing data on median home value and market rents, the gross yield from the Section 8 program at $11,520 annually is a solid baseline for investment consideration. Given the low renter density and the likely stability of Section 8 tenants, this program offers a predictable income stream, which is more realistic in the current context of ZIP 68923.
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.