Location: Harlan County, NE | Metro: Harlan County, NE
| Unit Size | Monthly FMR |
|---|---|
| Studio | $730 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,390 |
| 5 Bedrooms | $1,612 |
| 6 Bedrooms | $1,805 |
| 7 Bedrooms | $1,949 |
| 8 Bedrooms | $2,046 |
The analysis for ZIP code 68969 in Unknown, Nebraska, reveals some critical insights into the potential performance of properties under Section 8 housing programs versus the general rental market. The Federal Market Rent (FMR) for a two-bedroom apartment in this area for fiscal year 2026 is set at $960 per month, based on metro-level data. To derive a cap rate, we must first annualize this figure, which brings us to an annual rental income of $11,520.
Given that the median home value is not available, we cannot calculate a precise gross yield for the market rent scenario. However, we can still analyze the implications of the Section 8 rent. Assuming a typical property value in the neighborhood, let's consider a hypothetical median home value for illustration purposes. If we assume a median home value of $200,000, the implied gross yield for a Section 8 property would be 5.76%. This calculation is based on the formula: Gross Yield = (Annual Rental Income / Property Value) * 100. Therefore, $11,520 / $200,000 * 100 = 5.76%.
The lack of market rent data and median home value makes it challenging to provide a direct comparison between the Section 8 and market rents. However, the absence of these figures suggests that there might be limited data on typical market rents and property values in this ZIP code, indicating that Section 8 could represent a significant portion of the rental market here. This scenario is particularly relevant when considering the unknown renter density percentage and days on market (DOM).
While the exact gross yield for market rents cannot be determined due to insufficient data, the implication is that if market rents were higher than the Section 8 rates, the gross yield would likely be greater than 5.76%. Conversely, if market rents are lower, or if the median home value is higher, the gross yield would be less attractive. Given the incomplete data, the Section 8 rate of $960 per month provides a stable and predictable income stream for landlords and small-portfolio investors, making it a reliable option for those seeking consistent returns.
In conclusion, the Section 8 program offers a clear rental income benchmark for ZIP 68969, with an annualized FMR of $11,520 for a two-bedroom unit. This translates to an implied gross yield of 5.76% based on our assumed median home value. The absence of market rent data and median home value figures makes it difficult to assess the relative attractiveness of market rents, but the stability and predictability of Section 8 income suggest it as a solid investment strategy for the area.
Data Sources: FMR data from HUD (2027).
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.