Location: Sioux County, NE | Metro: Scotts Bluff 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 | $740 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,050 | $150,442 | 0.7% | D |
| 3BR | $1,320 | $213,501 | 0.62% | D |
U.S. Census Bureau data (2024)
The potential downsides for a landlord investing in Section 8 properties in ZIP code 69358 in Morrill, NE, include significant tenant turnover due to the gap between the market rent of $904 and the Fair Market Rent (FMR) of $1,000 for fiscal year 2026. This disparity can lead to frequent changes in occupancy, which may disrupt property management and increase administrative costs.
Vacancy exposure is another concern, as the Days on Market (DOM) data is not available, indicating that it might be challenging to predict how long a unit will remain vacant. This unpredictability can affect cash flow and financial planning for landlords.
The deferred-maintenance exposure is also noteworthy. With a typical home value of $191,130 and a median income of $52,159, landlords must be prepared for the possibility that tenants may not have the resources to cover non-emergency repairs promptly. This situation can necessitate increased capital expenditures for property upkeep and maintenance.
However, these risks are mitigated by the high concentration of renters in the area, with 27.2% of the population being renters. High renter density typically correlates with higher demand for rental assistance vouchers, such as Section 8, which can stabilize occupancy rates and provide a steady stream of tenants willing to pay their portion of the rent.
In summary, despite the challenges of tenant turnover, vacancy exposure, and deferred maintenance, the strong presence of renters in ZIP 69358 suggests a moderate risk level for a first-time Section 8 landlord.
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.