Location: Omaha-Council Bluffs, NE | Metro: Omaha-Council Bluffs, NE-IA HUD Metro FMR Area
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 | $1,240 |
| 1 Bedroom | $1,290 |
| 2 Bedrooms | $1,540 |
| 3 Bedrooms | $2,040 |
| 4 Bedrooms | $2,310 |
| 5 Bedrooms | $2,680 |
| 6 Bedrooms | $3,002 |
| 7 Bedrooms | $3,242 |
| 8 Bedrooms | $3,404 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,290 | $186,376 | 0.69% | D |
| 2BR | $1,540 | $301,434 | 0.51% | F |
| 3BR | $2,040 | $425,197 | 0.48% | F |
| 4BR | $2,310 | $786,472 | 0.29% | F |
U.S. Census Bureau data (2024)
If a landlord is considering purchasing a property in ZIP code 68069 (Waterloo, NE) for Section 8 purposes, they must evaluate several key factors to make an informed decision. The following decision tree will guide them through the process.
Step 1: Determine if the Fair Market Rent (FMR) of $1300 can cover the debt service on a property valued at $438,812.
Yes: The FMR of $1300 is sufficient to cover the debt service on a property of that value. This indicates that the landlord can expect to receive adequate rental income to meet their financial obligations. Proceed to Step 2.
No: The FMR of $1300 does not clear the debt service on a property valued at $438,812. This means the rental income would be insufficient to cover the mortgage payments and other expenses. Therefore, it is not advisable to purchase in this area for Section 8 investment.
Step 2: Compare the market rent of $1,382 (from Census ACS data) to the FMR.
Above FMR: The market rent of $1,382 is higher than the FMR of $1300. This suggests that landlords could potentially charge more than the FMR to non-Section 8 tenants, which might provide additional revenue. However, they must also consider the proportion of tenants who qualify for Section 8.
At FMR: The market rent of $1,382 aligns closely with the FMR of $1300. This means that landlords will likely set their rents at the FMR level, ensuring compliance with Section 8 guidelines.
Below FMR: The market rent of $1,382 is lower than the FMR of $1300, which is unusual but possible. In this scenario, landlords would need to ensure that they can still attract Section 8 tenants despite the higher-than-market rent.
Step 3: Assess the demand for rental properties in the area. The data shows that 16.1% of residents are renters, but the Days on Market (DOM) is listed as N/A, indicating incomplete information.
It depends: With 16.1% of residents being renters, there is a moderate demand for rental properties. However, the lack of data on DOM makes it difficult to assess how quickly properties are rented out. Landlords should investigate further to understand the local rental market dynamics, such as vacancy rates and competition from other rental properties.
In conclusion, the suitability of purchasing a property in ZIP 68069 for Section 8 investment hinges on whether the FMR clears debt service, the relationship between market rent and FMR, and the strength of rental demand. Given the available data, landlords must weigh these factors carefully before making a final decision.
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.