Location: Sioux County, NE | Metro: Box Butte 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 | $860 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,600 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,190 | $197,032 | 0.6% | D |
| 3BR | $1,600 | $276,710 | 0.58% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 69348, centered around Hemingford, Nebraska, reveals a significant opportunity for landlords and small-portfolio investors due to the disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $1,040, whereas the Census ACS reports an average market rent of $863. This means that the gap between FMR and market rent is $177, or approximately 20.5%.
Given that the FMR exceeds the market rent, it positions Hemingford as a yield play for property owners who can leverage the higher guaranteed payments from the Housing Choice Voucher program. Landlords accepting Section 8 vouchers can expect to receive a more substantial rental income than what is typically available on the open market. This scenario benefits investors looking to maximize their returns while providing affordable housing options to tenants.
In Hemingford, where 20.8% of residents are renters, the median home value stands at $199,764 and the median household income is $76,719. These figures suggest that there is a segment of the population that would benefit from the affordability provided by Section 8 vouchers. For landlords, this represents a chance to secure steady rental income without the risk of collecting below-market rates. The Housing Choice Voucher program ensures that the rent is paid, regardless of the tenant's ability to pay the difference, making it a reliable source of income.
However, it's important to note the implications of renting below open-market rates. While the FMR provides a cushion against market fluctuations, landlords should be aware of the potential for lower overall profitability compared to renting properties at their full market value. Nonetheless, the stability offered by the voucher system can outweigh the risks for many investors, especially those looking to support affordable housing initiatives in a community where the median income is $76,719 and the median home value is significantly higher at $199,764.
To summarize, the gap between FMR and market rent in ZIP 69348 makes it a strategic investment point for those willing to accept Section 8 vouchers. This not only secures a higher rental income but also contributes to the local economy by providing stable housing solutions for a portion of the population that might otherwise struggle to find affordable accommodation.
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.