Location: Omaha-Council Bluffs, NE | Metro: Omaha-Council Bluffs, NE-IA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,050 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,310 |
| 3 Bedrooms | $1,740 |
| 4 Bedrooms | $1,970 |
| 5 Bedrooms | $2,285 |
| 6 Bedrooms | $2,559 |
| 7 Bedrooms | $2,764 |
| 8 Bedrooms | $2,902 |
U.S. Census Bureau data (2024)
The ZIP code 51501 encompasses a part of Council Bluffs, Iowa, which is characterized by a modest-sized community of 34,618 residents. Among these inhabitants, 36.2% are renters, indicating a significant demand for rental properties. The median household income in this area stands at $59,843, reflecting a middle-class demographic. The median home value of $180,272 suggests a mix of affordable and moderate-priced housing options.
When it comes to rent economics, the Fair Market Rent (FMR) for ZIP 51501 in fiscal year 2024 is set at $1,050. This figure is notably lower than the market rent, as measured by Zillow's ZORI index, which is $1,221. The discrepancy between the FMR and the actual market rent presents an opportunity for landlords and small-portfolio investors to consider the financial dynamics of operating in this area.
The place fits well for a hands-off voucher operator due to the substantial difference between the FMR and market rent. Landlords can rely on Section 8 vouchers to cover a portion of their rental costs, ensuring steady cash flow without the need for extensive property management. However, for those inclined towards a hands-on approach, there is potential to implement value-add strategies. By improving property amenities or enhancing the living experience, landlords could command rents closer to the market rate, thereby increasing profitability.
In conclusion, ZIP 51501 offers a balanced environment for both passive and active investors. For hands-off operators, the reliance on Section 8 vouchers is viable given the lower FMR compared to market rates. Meanwhile, hands-on investors can leverage the gap between FMR and market rents to create value and enhance returns on investment.
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.