Location: Webster County, NE | Metro: Webster County, NE
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $730 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $67,440 | 1.5% | A |
| 3BR | $1,410 | $135,754 | 1.04% | B |
U.S. Census Bureau data (2024)
Red Cloud, Nebraska, located in ZIP code 68970, stands out as a rural community within Webster County with a population of 1,248 residents. A significant portion, 28.3%, of these residents are renters, indicating a notable demand for rental properties. The median household income in Red Cloud is $58,523, which is relatively modest compared to urban areas but supportive of a stable local economy. The median home value in the area is $107,921, reflecting the typical housing costs in this rural setting.
The economic landscape for landlords and small-portfolio investors in Red Cloud is influenced by the Section 8 Housing Choice Voucher program. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $960, while the current market rent, according to the Census American Community Survey (ACS), is $583. This disparity between the FMR and the actual market rent presents an opportunity for landlords who can benefit from higher rental rates through the voucher program. It also suggests that the local rental market could potentially absorb increases in rental prices due to the voucher program without causing significant displacement of tenants.
Based on the data signature, Red Cloud's real estate market appears to be stable. The relatively low population density and modest income levels suggest a steady demand for affordable housing options. The difference between the FMR and the market rent indicates a positive outlook for landlords participating in the Section 8 program, as they can charge closer to the FMR rate, thereby increasing their revenue. However, the modest income levels imply that the market remains sensitive to economic changes, which could affect both tenant eligibility and landlord profitability. Overall, the data points to a stable environment with potential for growth, particularly for those willing to engage with the Section 8 program.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.