Location: Red Willow County, NE | Metro: Frontier 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 | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,220 |
| 4 Bedrooms | $1,350 |
| 5 Bedrooms | $1,566 |
| 6 Bedrooms | $1,754 |
| 7 Bedrooms | $1,894 |
| 8 Bedrooms | $1,989 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $780 | $75,889 | 1.03% | B |
| 2BR | $1,010 | $130,307 | 0.78% | D |
| 3BR | $1,220 | $200,370 | 0.61% | D |
| 4BR | $1,350 | $241,133 | 0.56% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 69001 (McCook, NE, Red Willow County, NE metro) does not favor high returns on investment due to the discrepancy between the Fair Market Rent (FMR) and the actual market rent. The FMR for the area, set at $960 for fiscal year 2026, is significantly higher than the reported market rent of $818 according to the Census ACS. This suggests that landlords might face challenges in justifying higher rents to tenants.
Acquisition in this ZIP code is relatively affordable, with a median home value of $176,923. The lack of available data on days on market (DOM) and the fact that only 0.1% of listings require a price cut indicate that homes are selling quickly and at their listed prices. However, the low price-cut share could also imply a smaller pool of distressed properties for potential acquisition at reduced rates.
Tenant demand in ZIP 69001 is moderate, given a population of 9,054 and a renter share of 29.4%. This means there are approximately 2,661 renters in the area, providing a reasonable base of potential tenants. However, the relatively small population size limits the overall demand.
Verdict: While ZIP 69001 offers an affordable entry point for acquisitions with a median home value of $176,923, the rent math is not particularly favorable due to the gap between FMR and actual market rent. The moderate tenant demand, driven by a 29.4% renter share, can support rental properties but may not offer significant growth opportunities. Landlords should expect steady rather than explosive returns in this market.
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.