Location: Sheridan County, NE | Metro: Sheridan County, NE
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,270 |
| 4 Bedrooms | $1,670 |
| 5 Bedrooms | $1,937 |
| 6 Bedrooms | $2,169 |
| 7 Bedrooms | $2,343 |
| 8 Bedrooms | $2,460 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 69365 reveals some interesting dynamics when considering the annualized Fair Market Rent (FMR) for a 2-bedroom apartment at $980 per month for fiscal year 2026, based on metro rates. The median home value for this area is currently not available, which complicates the calculation of an accurate gross yield. However, we can still derive a rough understanding of potential yields based on the data that is accessible.
In the case of Section 8 rental income, using the $980 monthly FMR, the annual rent would amount to $11,760. Given that the median home value is not available, we cannot calculate a precise gross yield for this scenario. However, it's important to note that the implied gross yield from Section 8 would be significantly lower than typical market yields due to the fixed rate structure of the program. This makes it less attractive for investors seeking high returns purely from rental income.
Considering the market rent is also not available, it's challenging to provide a direct comparison to the Section 8 scenario. However, it's generally understood that market rents tend to be higher than the FMR set by Section 8. Without specific market rent figures, we can infer that the gross yield from market rents would likely be higher than the $11,760 annualized from Section 8 payments.
A key factor influencing the realism of these scenarios is the 0.0% renter density in ZIP 69365. This suggests that there is either a very low demand for rentals or a significant portion of the housing stock is owner-occupied. In such a context, relying solely on Section 8 tenants might not be a viable strategy for landlords or small-portfolio investors, as finding eligible tenants could be difficult. Additionally, the lack of data on the Days on Market (DOM) indicates that there is no recent activity in the rental market, further complicating the assessment of market rents.
In summary, while the annualized Section 8 rent provides a stable income source at $11,760 per year, the absence of market rent data and the low renter density make it challenging to invest in this area based on rental income alone. Investors should consider other factors, such as property appreciation and the broader economic outlook of the ZIP code, before making investment decisions.
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.