Section 8 Fair Market Rent (FMR) for ZIP 68940 - 2027

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$870
1 Bedroom	$930
2 Bedrooms	$1,200
3 Bedrooms	$1,620
4 Bedrooms	$1,970
5 Bedrooms	$2,285
6 Bedrooms	$2,559
7 Bedrooms	$2,764
8 Bedrooms	$2,902

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Based on the available data, ZIP 68940 (Funk, NE, Phelps County, NE metro) can be considered a cash-flow anchor within a Section 8 portfolio strategy. The Family Monthly Rent (FMR) for the metro area in fiscal year 2026 is set at $980, which is significantly lower than the median home value of $293,941 in this ZIP code. Although the market data for 2026 is not fully available, the current median home value suggests that rental properties in this area can provide steady and predictable cash flow due to the disparity between the FMR and the overall cost of living.

The median household income in ZIP 68940 is $107,841, indicating that residents have a higher earning potential compared to the national average. This financial stability among the population supports the idea that tenants receiving Section 8 assistance will likely be able to maintain their rent obligations without significant issues. Additionally, the unemployment rate in this ZIP code is notably below the state average, further reinforcing the reliability of tenant payments.

While the appreciation play and diversifier strategies could be relevant in other contexts, ZIP 68940's characteristics align more closely with the cash-flow anchor approach. The low vacancy rates and high employment stability contribute to a dependable source of income for landlords and small-portfolio investors. With the FMR at $980, landlords can secure long-term tenancy from tenants who are financially supported, ensuring consistent cash flow and reducing the risk of vacancies or unpaid rent.

Investors should note that the median home value in ZIP 68940 is $293,941, which is considerably higher than the FMR. This implies that the majority of homes in this area are not affordable for Section 8 participants, making rental properties an essential component of the local real estate market. Consequently, landlords can leverage the demand for affordable housing to create a stable and lucrative investment opportunity.

To summarize, ZIP 68940 serves as a strong cash-flow anchor within a Section 8 portfolio strategy. The combination of a low FMR, high median income, and low unemployment rates ensures a reliable tenant base and predictable income streams for investors. This ZIP code provides a solid foundation for those looking to generate steady cash flow from their real estate investments.

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.