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 | $1,090 |
| 1 Bedroom | $1,140 |
| 2 Bedrooms | $1,360 |
| 3 Bedrooms | $1,800 |
| 4 Bedrooms | $2,040 |
| 5 Bedrooms | $2,366 |
| 6 Bedrooms | $2,650 |
| 7 Bedrooms | $2,862 |
| 8 Bedrooms | $3,005 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,140 | $132,064 | 0.86% | C |
| 2BR | $1,360 | $174,042 | 0.78% | D |
| 3BR | $1,800 | $208,528 | 0.86% | C |
| 4BR | $2,040 | $240,245 | 0.85% | C |
| 5BR | $2,366 | $265,310 | 0.89% | C |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 68104, located in Omaha, Nebraska, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1,050, while the market rent, as measured by the Zillow Rent Index (ZORI), stands at $1,462. This means that landlords can expect a shortfall of $412 per unit if they choose to participate in the Section 8 program, which translates to a 28% discount off the market rate.
The disparity between these figures has several implications for landlords and small-portfolio investors. Firstly, it indicates that voucher tenants will be paying well below the open-market rates, thus reducing the potential rental income. In Omaha, where 42.2% of residents are renters, and the median income is $60,549, the cost of housing for voucher recipients is heavily subsidized. The median home value in the area is $196,961, reflecting the broader economic landscape and property values.
Participating in the Section 8 program can still be a strategic move for some investors, particularly those who view it as a yield play. Despite the lower rental rates, the program ensures stable occupancy and a guaranteed source of income through the Housing Choice Voucher. Landlords must weigh the benefits of consistent cash flow against the reduced rental income and the administrative requirements of the program.
However, the financial impact cannot be overlooked. With an average shortfall of $412 per month, landlords need to ensure their expenses are managed effectively to maintain profitability. This includes considering the costs of maintenance, insurance, and property taxes. Additionally, landlords should be aware of the potential for increased scrutiny and compliance issues associated with the program.
In summary, the gap between the FMR and market rent in ZIP 68104 highlights the financial considerations for landlords interested in the Section 8 program. While the program provides a steady stream of tenants, it also comes with a 28% reduction in expected rental income. Investors must carefully assess whether the benefits of the program outweigh the financial and administrative challenges in the Omaha, NE context.
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.