Location: Lincoln County, NE | Metro: Custer 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 | $780 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,420 |
| 5 Bedrooms | $1,647 |
| 6 Bedrooms | $1,845 |
| 7 Bedrooms | $1,993 |
| 8 Bedrooms | $2,093 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,070 | $144,044 | 0.74% | D |
| 3BR | $1,350 | $219,248 | 0.62% | D |
| 4BR | $1,420 | $231,317 | 0.61% | D |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 69138 in Gothenburg, Nebraska, reveals interesting insights into potential investment returns. To begin, let's consider the Fair Market Rent (FMR) for a two-bedroom unit, which is set at $960 annually according to the FY 2026 metro data. This figure translates to a monthly rent of approximately $80, providing an annualized rental income of $960 per unit. Given the median home value in the area is $198,195, we can calculate the implied gross yield for a Section 8 property.
The gross yield for a property rented under the Section 8 program using the FMR would be approximately 4.85%. This calculation is derived by dividing the annual rental income ($960) by the median home value ($198,195). The formula looks like this:
Gross Yield = Annual Rental Income / Median Home Value
Alternatively, if we use the market rent figure of $921 (from the Census ACS), the annualized rental income drops slightly to $921. This yields a gross yield of approximately 4.65%, calculated similarly as:
Gross Yield = Annual Rental Income / Median Home Value = $921 / $198,195
Given the 25.7% renter density in Gothenburg, it's important to note that while the FMR provides a higher gross yield, the actual market conditions suggest that the lower market rent scenario is more realistic. The N/A-day DOM (days on market) indicates that there might be limited data on how quickly properties are renting out, which could imply steady demand but also highlights the need for cautious interpretation of the data.
In conclusion, while the Section 8 FMR offers a marginally better gross yield at 4.85%, the market rent scenario, yielding 4.65%, aligns more closely with the actual rental environment in Gothenburg. Investors should consider these figures when evaluating the potential profitability of properties in this ZIP code under the Section 8 program.
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.