Location: Omaha-Council Bluffs, NE | Metro: Omaha-Council Bluffs, NE-IA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,180 |
| 1 Bedroom | $1,230 |
| 2 Bedrooms | $1,460 |
| 3 Bedrooms | $1,940 |
| 4 Bedrooms | $2,190 |
| 5 Bedrooms | $2,540 |
| 6 Bedrooms | $2,845 |
| 7 Bedrooms | $3,073 |
| 8 Bedrooms | $3,227 |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,140 for ZIP 51510 in fiscal year 2024 can sufficiently cover the mortgage on a home valued at $205,364. To put this into perspective, a typical mortgage for a home priced at $205,364 would range between $800-$1,000 monthly, depending on interest rates and down payments. Given the FMR, it's reasonable to assume that the mortgage would be covered, leaving a buffer for maintenance and other costs.
The investor could also doubt the adequacy of renter demand at 9.0%. According to recent data, the rental vacancy rate in ZIP 51510 is around 14.4%, which is higher than the national average. This suggests that there is a moderate level of demand, but it's not overwhelming. Landlords should consider the broader economic conditions and potential for growth when evaluating this metric.
Another concern might be whether Section 8 vouchers will keep pace with the $1,323 market rents. As of 2024, the HUD Fair Market Rent for a two-bedroom apartment in ZIP 51510 is set at $1,340. This indicates that the voucher amount is nearly equal to the market rent, suggesting that vouchers can adequately support tenants in finding housing within their budget. However, future adjustments to the voucher amounts will depend on local market trends and HUD policies.
In summary, while the FMR appears sufficient to cover a mortgage, the rental vacancy rate suggests a balanced market with room for improvement. The alignment of voucher amounts with market rents provides assurance for those relying on federal assistance. Investors should remain vigilant regarding economic changes and policy updates that could affect these factors.
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.