Location: Keya Paha County, NE | Metro: Cherry County, NE
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
U.S. Census Bureau data (2024)
First, assess whether the Fair Market Rent (FMR) of $1,000 for the metro area in fiscal year 2026 can cover the debt service on a property. Debt service includes all principal and interest payments on any loans used to purchase or improve the property. If the FMR cannot fully cover these costs, then the answer is No. Landlords must ensure that their rental income meets or exceeds their financial obligations to avoid losses.
If the FMR does cover the debt service, proceed to the second step. Evaluate the relationship between the market rent and the FMR. In ZIP 69220, the market rent is currently N/A. If the market rent is significantly higher than the FMR, landlords might consider waiting until they can secure a higher rent or look for other areas where the FMR aligns more closely with the market rent. If the market rent is equal to or slightly below the FMR, the answer leans towards Yes. This scenario indicates that landlords can expect to receive rents close to the FMR without much difficulty.
The third step involves assessing the demand for rental properties. In ZIP 69220, 72.5% of residents are renters, which suggests a strong base of potential tenants. Additionally, the days on market (DOM) for rental listings is N/A, which needs to be clarified. If the DOM is low, indicating quick turnover of rental listings, this supports a Yes decision. Low DOM implies high demand and minimal vacancy risk. However, if the DOM is high, it signals a longer wait time for finding tenants, leading to a No or It Depends outcome, depending on how long landlords can afford to wait for a tenant.
In summary, if the FMR of $1,000 covers the debt service, the market rent is near or below the FMR, and there is a combination of a high percentage of renters and low DOM, then buying in ZIP 69220 for Section 8 is advisable. Conversely, if any of these conditions are not met, particularly if the FMR does not cover debt service or if the DOM is unacceptably high, then purchasing in this ZIP code would not be recommended.
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.