Location: York County, NE | Metro: Clay 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 | $850 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,170 | $194,066 | 0.6% | D |
| 3BR | $1,400 | $238,329 | 0.59% | F |
| 4BR | $1,540 | $257,490 | 0.6% | F |
U.S. Census Bureau data (2024)
A decision tree for whether to invest in ZIP code 68979 (Sutton, NE) for Section 8 properties follows:
1) Does FMR $1,080 (metro FY 2026) clear debt service on a $209,680 property?
No. To determine if the Fair Market Rent (FMR) of $1,080 can cover the debt service, we need to calculate the monthly mortgage payment for a $209,680 property. Assuming a typical interest rate of 5% and a 30-year mortgage term, the monthly mortgage payment would be approximately $1,100. This amount exceeds the FMR of $1,080, indicating that the rent alone cannot cover the mortgage payment.
2) Is market rent $907 (Census ACS) above, at, or below FMR?
The market rent of $907 is below the FMR of $1,080. This suggests that the average rental price in Sutton, NE is lower than what the government considers fair for the area. However, this does not directly impact the ability to cover debt service, as the critical comparison is between the FMR and the mortgage payment.
3) Are 14.8% renters + N/A-day days on market (DOM) enough demand?
It depends. The percentage of renters at 14.8% indicates a moderate level of rental demand in the area. However, the lack of data on days on market (DOM) makes it difficult to assess how quickly rental properties are typically leased. If the DOM is low, it could indicate strong demand despite the moderate percentage of renters. Conversely, a high DOM would suggest weaker demand.
To conclude, based on the provided data, the answer to whether you should buy in ZIP 68979 for Section 8 properties is generally no. The FMR of $1,080 is insufficient to cover the debt service on a $209,680 property, which would require a higher rent to break even. While the market rent being below the FMR might suggest some potential for increasing rents, the primary issue remains the inability of the FMR to support the mortgage payments. Additionally, without concrete data on the DOM, it's challenging to fully evaluate the rental market dynamics. Therefore, unless you can secure a lower purchase price or find properties with significantly lower mortgage payments, Sutton, NE is not a favorable location for Section 8 investments.
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.