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 | $1,080 |
| 1 Bedroom | $1,130 |
| 2 Bedrooms | $1,340 |
| 3 Bedrooms | $1,780 |
| 4 Bedrooms | $2,010 |
| 5 Bedrooms | $2,332 |
| 6 Bedrooms | $2,612 |
| 7 Bedrooms | $2,821 |
| 8 Bedrooms | $2,962 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,130 | $139,286 | 0.81% | C |
| 2BR | $1,340 | $199,474 | 0.67% | D |
| 3BR | $1,780 | $237,263 | 0.75% | D |
| 4BR | $2,010 | $267,980 | 0.75% | D |
| 5BR | $2,332 | $309,120 | 0.75% | D |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,110 for ZIP 68105 in fiscal year 2024 will sufficiently cover the mortgage on a $223,816 home. To address this concern, let's consider the typical mortgage payments. A home priced at $223,816 with a 20% down payment would require a mortgage of approximately $179,052.80. Assuming a 30-year fixed-rate mortgage at an average interest rate of 5%, the monthly mortgage payment would be around $970. This amount is well within the $1,110 FMR, indicating that the rent should comfortably cover the mortgage.
The second objection could be regarding the renter demand in ZIP 68105, which stands at 56.5%. This percentage suggests a moderate level of rental activity. However, it is important to note that the occupancy rate does not directly correlate with the profitability of rental properties. The key metric is the vacancy rate, which indicates how quickly a property can be rented out. While the data provided does not include the vacancy rate, the 56.5% renter demand implies a stable market where finding tenants should not be overly challenging.
Lastly, an investor might wonder if the Housing Choice Voucher program will keep pace with the $1,290 market rents. According to the data, the FMR of $1,110 is lower than the market rent, but it is crucial to understand that voucher holders often face restrictions and may not always have access to the full range of rental options. Additionally, landlords participating in the voucher program receive subsidies that can make up for the difference between the FMR and the actual market rent. However, the specific subsidy amount is not provided in the data, so it is recommended to consult local housing authorities for precise figures.
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.