Location: Webster County, NE | Metro: Nuckolls County, NE
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,430 |
| 4 Bedrooms | $1,650 |
| 5 Bedrooms | $1,914 |
| 6 Bedrooms | $2,144 |
| 7 Bedrooms | $2,316 |
| 8 Bedrooms | $2,432 |
U.S. Census Bureau data (2024)
The investment risk assessment for ZIP code 68942 in relation to Section 8 properties reveals several critical points that could go wrong. Firstly, tenant turnover is a significant concern when comparing the market rent to the Fair Market Rent (FMR) of $1,050 set for fiscal year 2026 in the metro area. The absence of market rent data indicates uncertainty, which could lead to higher-than-average turnover if tenants find better deals elsewhere.
Vacancy exposure is another issue. With no data on the days-on-market (DOM), it's unclear how long it might take to fill a vacant property. This uncertainty can be costly, especially when considering the typical home value of $107,623 and the median income of $63,333. These figures suggest that many residents may struggle to afford housing, increasing the risk of vacancies.
Deferred maintenance is also a risk factor. Given the typical home value and median income, landlords might face challenges in maintaining properties to meet Section 8 standards without incurring substantial costs. The financial burden of repairs and upkeep can be significant, particularly if the property needs extensive work to comply with the program's requirements.
However, these risks must be weighed against the 5.4% renter share in the area. High renter density generally translates into higher demand for housing vouchers, making it easier to attract and retain tenants who qualify for Section 8 assistance. Despite the potential for high turnover and vacancy, the presence of a substantial number of renters creates a stable pool of potential tenants, mitigating some of the financial risks associated with the program.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.