Section 8 Fair Market Rent (FMR) for ZIP 69143 - 2027

Location: Lincoln County, NE | Metro: Lincoln County, NE

Investment Score for ZIP 69143

Monthly Rent (2BR)

$1,010

Median Price (2BR)

$161,854

1% Rule

0.62%

Annual Yield

7.49%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$770
1 Bedroom	$780
2 Bedrooms	$1,010
3 Bedrooms	$1,210
4 Bedrooms	$1,370
5 Bedrooms	$1,589
6 Bedrooms	$1,780
7 Bedrooms	$1,922
8 Bedrooms	$2,018

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,010	$161,854	0.62%	D
3BR	$1,210	$270,651	0.45%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

1,789

Median Household Income

$90,625

Housing Units

728

Renter Percentage

16.0%

Occupancy Rate

95.2%

Renter Occupied

111

To determine if you should buy a property in ZIP 69143 (Hershey, NE) for Section 8 investment, follow these steps:

Step 1: Debt Service Coverage Ratio (DSCR)

The Fair Market Rent (FMR) for Hershey, NE, in fiscal year 2026 is $970. Calculate whether this amount can cover the debt service on a property valued at $269,028. If the DSCR is greater than 1, meaning that the rental income exceeds the debt service, then proceed to Step 2.

Step 2: Market Rent Comparison

The Census American Community Survey reports the average market rent in Hershey, NE, to be $774. Compare this figure to the FMR of $970. If the market rent is below the FMR, then Section 8 properties could be more profitable compared to the market average. If the market rent equals or exceeds the FMR, then consider other factors before making an investment decision.

Step 3: Rental Demand Analysis

In Hershey, NE, 16.0% of residents are renters. The data does not provide the number of days on the market (DOM), which is typically used to gauge how quickly rentals are filled. However, the percentage of renters indicates a moderate demand for rental housing.

If the DSCR is greater than 1, and the market rent is below the FMR, and there is sufficient rental demand, then the answer is Yes. You should consider purchasing a property in ZIP 69143 for Section 8 investment.
If the DSCR is less than 1, then the answer is No. The rental income is insufficient to cover the debt service on a $269,028 property.
If the market rent is equal to or above the FMR, then the answer is It Depends. Evaluate the potential profitability against market conditions and the cost of acquisition.
If the rental demand is low, despite favorable DSCR and market rent conditions, then the answer is No. There is not enough demand to ensure the property will be rented consistently.

Note: The final decision should also take into account the specific terms of Section 8 contracts, the condition of the property, and any additional costs or requirements that might affect the overall profitability.

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.