Location: Phelps County, NE | Metro: Harlan 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 market analysis for Section 8 investors targeting ZIP code 68949 in Phelps County, Nebraska, reveals a favorable cash flow scenario when comparing HUD Fair Market Rent (FMR) rates against actual market rents. The HUD FMR for the Phelps County metro area, effective for fiscal year 2026, is set at $960. This figure stands above the current market rent, which is recorded at $810 according to Census ACS data. As such, voucher tenants will cashflow at FMR levels, providing a significant buffer over market rates.
To further contextualize this, consider the median home value in ZIP 68949, which is $211,456. With the market rent at $810, the rent-to-price ratio is approximately 0.4%, calculated as ($810 * 12) / $211,456. This ratio indicates that rental income alone would cover less than half of the mortgage payment on an average-priced home, suggesting that the primary benefit for investors lies in the guaranteed income through Section 8 vouchers rather than in leveraging the property purely as a rental asset.
The dynamics between renting and buying in this area are influenced by the low days on market (DOM) and the minimal share of homes that undergo price cuts. Specifically, the median DOM is N/A, indicating quick sales, and only 0.1% of homes experience price reductions. These factors point towards a stable market where housing values do not fluctuate widely, and properties are absorbed quickly once listed.
In summary, the strongest angle for Section 8 investors in ZIP 68949 is cashflow, given the substantial gap between the HUD FMR and the local market rent. This ensures that landlords can rely on steady, government-backed income without the need for premium units, making it an attractive opportunity for those seeking consistent returns.
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.