Location: Nuckolls County, NE | Metro: Clay County, NE
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 | $730 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,210 | $209,332 | 0.58% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 68938 reveals interesting insights into potential investment returns. For the Fiscal Year 2026, the Fair Market Rent (FMR) for a 2-bedroom apartment is set at $960 annually. If we consider this figure as the rental income for a property, the implied gross yield can be calculated by dividing the annual rent by the median home value. Given the median home value in the area is $171,911, the gross yield would be approximately 0.56%, calculated as ($960 / $171,911) * 100.
However, the market rent for a similar property, according to the Census ACS, stands at $635 annually. Using this market rent figure, the gross yield drops significantly to about 0.37%. This calculation is derived from ($635 / $171,911) * 100. The disparity between these two yields highlights the impact that different rental rates have on the overall profitability of an investment property.
To determine which scenario is more realistic, it's important to consider the local market conditions. With a renter density of 20.1%, the demand for rental properties in ZIP 68938 is relatively low compared to areas with higher renter populations. Additionally, the lack of data on days on market (DOM) suggests either a stable market or limited transactional activity, making it difficult to predict how quickly a property might turn over.
Given the lower market rent and the moderate renter density, the $635 annual rent scenario appears more realistic for most investors. While the Section 8 program offers a guaranteed income source, the actual market rent reflects what tenants might pay independently. Therefore, the gross yield based on the market rent is likely a better indicator of the property's performance in a typical investment scenario.
In conclusion, while the Section 8 program provides a higher gross yield at 0.56%, the market conditions suggest that the 0.37% yield is more reflective of the actual rental environment in ZIP 68938. Investors should weigh these factors carefully when considering the potential returns on their investment properties.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.