Section 8 Fair Market Rent (FMR) for ZIP 51503 - 2027

Location: Omaha-Council Bluffs, NE | Metro: Omaha-Council Bluffs, NE-IA HUD Metro FMR Area

Investment Score for ZIP 51503

F
Monthly Rent (2BR)
$1,230
Median Price (2BR)
$207,862
1% Rule
0.59%
Annual Yield
7.1%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$990
1 Bedroom$1,030
2 Bedrooms$1,230
3 Bedrooms$1,630
4 Bedrooms$1,850
5 Bedrooms$2,146
6 Bedrooms$2,404
7 Bedrooms$2,596
8 Bedrooms$2,726

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
2BR $1,230 $207,862 0.59% F
3BR $1,630 $301,901 0.54% F
4BR $1,850 $398,950 0.46% F
5BR $2,146 $502,187 0.43% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
37,972
Median Household Income
$79,010
Housing Units
16,425
Renter Percentage
31.4%
Occupancy Rate
94.0%
Renter Occupied
4,853

The rental market in ZIP code 51503, located in Council Bluffs, IA, reflects a dynamic equilibrium between supply and demand. The Fair Market Rent (FMR) for the area stands at $1060 for fiscal year 2024, aligning closely with the market rent indicator known as ZORI, which is also set at $1,061. This parity suggests that the rental market is stable and well-adjusted to the local economy.

The low price-cut share of 0.3% indicates that landlords are generally not having to reduce their asking rents to attract tenants, implying a relatively strong demand for rental properties. Additionally, the days on market (DOM) figure of 23 days for rental listings is quite short, further supporting the idea that demand is robust and supply is efficiently absorbed.

A median home value of $301,033 places the area within a moderate range, making homeownership accessible to many residents but also suggesting that a significant portion of the population may still find renting more affordable. The 31.4% share of renters in the market provides insight into the ongoing housing pressures. With nearly one-third of the population renting, there is a persistent need for rental units, indicating that demand for rentals will likely continue to be steady.

The snapshot of the market shows that it is neither dominated by an excess of supply nor by overwhelming demand. Instead, it is characterized by a balance where rental prices are stable, homes are sold quickly, and a substantial portion of the population remains committed to renting. This balance suggests a resilient rental market that is responsive to changes in the local economy and demographics.

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.