Location: Gosper County, NE | Metro: Frontier County, NE
| Unit Size | Monthly FMR |
|---|---|
| Studio | $870 |
| 1 Bedroom | $1,120 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,710 |
| 4 Bedrooms | $2,080 |
| 5 Bedrooms | $2,413 |
| 6 Bedrooms | $2,703 |
| 7 Bedrooms | $2,919 |
| 8 Bedrooms | $3,065 |
U.S. Census Bureau data (2024)
A landlord considering investing in ZIP code 68948 for Section 8 properties must evaluate several key factors to make an informed decision. The first step is to assess whether the Fair Market Rent (FMR) of $1,390 for the metro area in fiscal year 2026 can cover the debt service on a property. Given that the median listing price for properties in this ZIP code is not provided, landlords need to calculate their own debt service based on the typical mortgage rates and the cost of the property they are interested in. If the FMR cannot cover the debt service, then the answer is a clear no.
The second question to consider is how the market rent compares to the FMR. In ZIP 68948, the average market rent is $1,223 according to the Census American Community Survey (ACS). This figure is below the FMR, indicating that landlords could potentially receive higher rents through Section 8 compared to the general market. However, if the market rent were to rise above the FMR, landlords would need to reassess whether Section 8 is still a viable option. At this point, the answer is yes, as the FMR provides a higher rental income.
The third factor is the demand for rentals. In ZIP 68948, 21.6% of residents are renters, which suggests a moderate level of demand. Additionally, the number of days on market (DOM) for rental properties is not specified, but it is crucial for understanding the speed at which units are rented. If the DOM is low, say under 30 days, this indicates strong demand, supporting a yes to buying for Section 8. Conversely, if the DOM is high, it signals weak demand, leading to a no. Without specific DOM data, the decision hinges on the percentage of renters and the local economic conditions.
In summary, for ZIP 68948, the FMR exceeds the market rent, making it favorable for Section 8 properties. However, the decision ultimately depends on the specific financial situation of the landlord and the demand dynamics, particularly the DOM, which is critical for ensuring a steady stream of tenants. Landlords must also ensure that the FMR sufficiently covers their debt service before proceeding with a purchase.
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.