Location: McPherson County, NE | Metro: Arthur 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 | $770 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,220 |
| 4 Bedrooms | $1,370 |
| 5 Bedrooms | $1,589 |
| 6 Bedrooms | $1,780 |
| 7 Bedrooms | $1,922 |
| 8 Bedrooms | $2,018 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,020 | $139,540 | 0.73% | D |
| 3BR | $1,220 | $221,382 | 0.55% | F |
| 4BR | $1,370 | $273,447 | 0.5% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP 69165, encompassing Sutherland, NE, and the McPherson County NE metro area, reveals several key points for potential landlords and small-portfolio investors.
First, regarding the rent math, it does not currently favor investment. The Fair Market Rent (FMR) set at $1,040 for the fiscal year 2026 is significantly higher than the actual market rent of $771, according to the Census ACS data. This discrepancy suggests that landlords would have difficulty charging the FMR without facing resistance from tenants who are accustomed to lower rents.
Second, the acquisition cost in the form of the median home value stands at $227,553. Given that the data does not provide days on market (DOM) or the percentage of homes requiring price cuts, it's challenging to determine if this cost is affordable relative to other markets. However, the lack of such information might indicate a stable market where homes are not frequently discounted or remain unsold for extended periods.
Third, tenant demand appears to be limited. With a total population of 1,760, only 25.9% of residents are renters. This relatively low renter share could make it difficult to find enough tenants to fill properties, especially considering the small overall population size.
Verdict: Investment in ZIP 69165 is not advisable due to the unfavorable rent math, where the FMR exceeds the market rent, and the limited tenant demand. The median home value is high compared to the local rental rates, which could lead to poor returns on investment. Landlords and investors should look elsewhere for better opportunities that align with their financial goals and risk tolerance.
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.