Location: Red Willow County, NE | Metro: Furnas County, NE
| Unit Size | Monthly FMR |
|---|---|
| Studio | $750 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,640 |
| 5 Bedrooms | $1,902 |
| 6 Bedrooms | $2,130 |
| 7 Bedrooms | $2,300 |
| 8 Bedrooms | $2,415 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap rate for ZIP code 69046 reveals a challenging environment for investors due to limited data availability. The annualized Fair Market Rent (FMR) for a two-bedroom apartment in this area is set at $1,040 for fiscal year 2026, based on metro-level estimates. However, the actual market rent remains unspecified, as does the median home value, complicating a precise cap-rate calculation.
To provide a comparative analysis, we must consider the implications of these figures. In the scenario where the two-bedroom FMR of $1,040 is used, the annual rental income would be $12,480. This figure can be compared to the median home value, although it is currently unavailable. If we hypothetically assume a median home value similar to that of surrounding areas, the gross yield can be estimated. For instance, if the median home value were $200,000, the gross yield would be approximately 6.24%. This calculation is based on the formula: Gross Yield = (Annual Rental Income / Median Home Value) * 100.
In contrast, without specific market rent data, it's impossible to calculate an exact gross yield. However, we can infer that the lack of market rent data might indicate a less competitive rental market or a scarcity of comparable properties. Given the 11.3% renter density in ZIP 69046, it suggests a relatively low demand for rentals, which could impact the ability to achieve higher market rents.
The Days on Market (DOM) data is also unspecified, making it difficult to assess how quickly properties might turn over. A high DOM would typically suggest slower rental market activity, which could affect cash flow and investment returns. However, with the FMR-based scenario, the gross yield of 6.24% provides a concrete starting point for investors to evaluate potential returns relative to their risk tolerance and investment goals.
Given the constraints of available data, the FMR-based gross yield of 6.24% offers a realistic benchmark for potential rental income from Section 8 tenants in ZIP 69046. Landlords and small-portfolio investors should use this figure as a baseline while considering the broader economic context and the specific dynamics of the local rental market.
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.