Location: Morrill County, NE | Metro: Cheyenne 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 | $930 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,470 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,230 | $159,847 | 0.77% | D |
U.S. Census Bureau data (2024)
Dalton, NE, located in ZIP code 69131, serves as an ideal cash-flow anchor within a Section 8 portfolio strategy. The area's Federal Market Rent (FMR) for the fiscal year 2026 is set at $1,090 for the metro area, which stands notably higher than the local market rent of $892. This $198 spread ensures a consistent and reliable income stream for landlords participating in the Section 8 program.
The median home value in Dalton, NE, is $173,333. Given the relatively low property values compared to other areas, this ZIP code can provide a stable base for investment portfolios. Landlords can expect steady rental income without the risk of high vacancy rates that might occur in areas with less tenant demand or higher competition.
A cash-flow anchor is crucial for any real estate investment strategy, especially when dealing with government programs like Section 8. The guaranteed rent through the Housing Choice Voucher Program means that landlords do not have to worry about finding tenants who can afford the market rate, ensuring a predictable income that can offset potential losses in other parts of their portfolio.
While Dalton, NE, does not present significant opportunities for appreciation, given the lack of data on price-cut shares and days on market (DOM), the primary benefit lies in its ability to generate consistent cash flow. The 16.7% renter share indicates a moderate demand for rentals, and with a median income of $66,111, there is a reasonable economic foundation supporting the local housing market.
In conclusion, ZIP 69131 should be considered a strong cash-flow anchor due to the favorable spread between the FMR and market rent. It provides a solid, dependable income source that can help stabilize a broader investment portfolio. Although appreciation potential is limited based on available data, the reliability of the Section 8 program makes this ZIP code a valuable addition to any strategic real estate investment plan.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.