Location: Kearney County, NE | Metro: Franklin County, NE
| Unit Size | Monthly FMR |
|---|---|
| Studio | $780 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,430 |
| 5 Bedrooms | $1,659 |
| 6 Bedrooms | $1,858 |
| 7 Bedrooms | $2,007 |
| 8 Bedrooms | $2,107 |
U.S. Census Bureau data (2024)
To classify ZIP code 68981, we must consider both yield and stability. The yield is determined by comparing the Fair Market Rent (FMR) of $1,050 with the home value of $226,168. Stability is assessed through the percentage of renters at 12.5%, median income at $62,917, and the lack of data on days on market (DOM).
The FMR of $1,050 indicates that rental properties can be rented out at this price point, which is lower than the national average. However, the home value of $226,168 suggests that property values are relatively high. This creates an interesting dynamic where rental income is modest, but capital appreciation could be significant if the area experiences growth.
The 12.5% renter rate implies that only a quarter of households in this ZIP code are renting, which could indicate a less competitive rental market compared to areas with higher percentages of renters. This potentially makes it easier to attract tenants, but it also means that the overall demand for rental units might be lower. The median income figure of $62,917 provides insight into the financial capacity of the residents. It is a moderate income level, suggesting that while there is some disposable income, it may not support high-end rentals.
Given these factors, ZIP 68981 does not clearly fit into a high-yield/low-stability flip-style market nor a steady-cashflow zone. Instead, it represents a middle ground. The low FMR relative to the high home value suggests that the primary opportunity lies in capital appreciation rather than rental income. With a moderate income level and a relatively low renter rate, the market is stable enough to provide reliable cash flow without the volatility often associated with higher renter rates.
To conclude, for landlords and small-portfolio investors, ZIP 68981 offers a balance between yield potential and stability. The focus should be on long-term investment strategies that leverage the area's potential for growth in property values rather than short-term rental yields.
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.