Location: Thomas County, NE | Metro: Blaine County, NE
| Unit Size | Monthly FMR |
|---|---|
| Studio | $740 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,390 |
| 5 Bedrooms | $1,612 |
| 6 Bedrooms | $1,805 |
| 7 Bedrooms | $1,949 |
| 8 Bedrooms | $2,046 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate picture for ZIP code 69163 reveals a nuanced perspective for potential investors. Based on the Fair Market Rent (FMR) for a two-bedroom apartment set at $960 per month for fiscal year 2026, the annualized income would be $11,520. Given the median home value of $225,355, this translates into an implied gross yield of approximately 5.11%. The calculation is straightforward: divide the annual rental income by the property value.
In contrast, using the market rent figure of $910 per month derived from the Census ACS data, the annualized income drops to $10,920. This yields a lower gross yield of about 4.85%, calculated similarly by dividing the annual rental income by the median home value. Both figures provide a clear benchmark for investors considering properties in ZIP 69163 under the Section 8 program.
The higher gross yield based on the FMR suggests that Section 8 rental payments are slightly above market rates. However, the actual market conditions and tenant preferences must be considered. With a renter density of 18.9%, it's evident that a significant portion of the population is homeowners, indicating a potentially less competitive rental market. This could mean that landlords might find it challenging to fill vacancies solely relying on market rents, making the higher Section 8 payment more attractive.
The lack of data on days on market (DOM) complicates the analysis further. Typically, a longer DOM would indicate slower rental turnover, which could affect the overall cash flow. However, without specific figures, we cannot quantify this impact accurately. Investors should consider local market dynamics and the stability of Section 8 funding when deciding between market rents and Section 8 participation.
In summary, the gross yield under the Section 8 program is 5.11%, while the market rent scenario offers a gross yield of 4.85%. Given the homeowner-heavy population, the higher yield from Section 8 may be more realistic and stable for long-term investment in ZIP 69163.
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.