Location: Red Willow County, NE | Metro: Hayes 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 | $830 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,660 |
| 5 Bedrooms | $1,926 |
| 6 Bedrooms | $2,157 |
| 7 Bedrooms | $2,330 |
| 8 Bedrooms | $2,447 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,150 | $143,159 | 0.8% | C |
| 3BR | $1,370 | $206,879 | 0.66% | D |
U.S. Census Bureau data (2024)
Culbertson, NE, located in ZIP code 69024, is a modest-sized community with a total population of 1,017 residents. The area has a significant portion of renters, making up 32.7% of the populace, which suggests a mixed housing market where both homeowners and tenants coexist. The median household income in this region stands at $52,337, indicating a middle-class neighborhood that is neither excessively wealthy nor impoverished. The median home value in ZIP 69024 is $206,769, reflecting a relatively affordable residential market.
Moving into the specifics of rental economics, the Fair Market Rent (FMR) for the metro area for fiscal year 2026 is set at $1,180. However, the actual market rent in Culbertson, according to the Census American Community Survey (ACS), is significantly lower at $817. This disparity between the FMR and the market rent presents an opportunity for investors interested in the Section 8 Housing Choice Voucher program. The lower market rent means that properties can be rented out at the FMR rate, thereby attracting tenants who qualify for the voucher program, while still offering a potential profit margin over the local market rates.
The question then arises: Is this area suitable for a hands-off voucher operator or a hands-on value-add buyer? Given the current economic landscape of Culbertson, a hands-off operator could find success here, especially considering the modest size of the community and the relatively low market rent compared to the FMR. The steady demand from Section 8 tenants would provide a stable cash flow without requiring extensive property management efforts. On the other hand, for a hands-on value-add buyer, there is room to improve the quality of the housing stock and potentially increase rents closer to the FMR, although this would require a deeper understanding of the local market dynamics and careful consideration of the renovation costs versus the potential increase in rental income.
In conclusion, ZIP 69024 offers a balanced environment for Section 8 investors, whether they seek passive income through hands-off operations or are willing to invest time and capital to enhance their portfolio's value. The key lies in understanding the local demographics and leveraging the difference between the FMR and market rent to achieve a favorable investment outcome.
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.