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 | $1,280 |
| 1 Bedroom | $1,340 |
| 2 Bedrooms | $1,590 |
| 3 Bedrooms | $2,110 |
| 4 Bedrooms | $2,390 |
| 5 Bedrooms | $2,772 |
| 6 Bedrooms | $3,105 |
| 7 Bedrooms | $3,353 |
| 8 Bedrooms | $3,521 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,340 | $166,245 | 0.81% | C |
| 2BR | $1,590 | $222,236 | 0.72% | D |
| 3BR | $2,110 | $264,859 | 0.8% | D |
| 4BR | $2,390 | $307,454 | 0.78% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 68106, located in Omaha, Nebraska, within Douglas County, are structured around the SAFMR (Small Area Fair Market Rent) and local market conditions. For a two-bedroom apartment, the SAFMR for FY 2024 is set at $1220. This rate is specifically tailored for this ZIP code, reflecting the unique cost of living and rental market dynamics in the area.
In contrast, the local market rent, as measured by ZORI (Zillow Observed Rent Index), stands at $1805 for a similar unit. Landlords participating in the Section 8 program must understand that while the SAFMR sets the maximum amount they can receive for rent, the actual reimbursement depends on the tenant's portion and utility allowances.
The voucher system works by covering the difference between the tenant's portion and the SAFMR. Tenants are typically required to contribute 30% of their adjusted income towards rent. For instance, if a tenant has an adjusted monthly income of $1500, they would be expected to pay $450 (30% of $1500) towards the rent. In this case, the landlord would receive the remaining $770 from the Section 8 voucher, bringing the total to $1220, which is the SAFMR for a two-bedroom unit in ZIP 68106.
Utility allowances also play a role in the overall compensation. These allowances vary but are generally set to cover a reasonable estimate of utilities based on historical data. For ZIP 68106, the utility allowance is included in the reimbursement calculation, ensuring that landlords receive a fair amount for these additional costs.
Given the SAFMR of $1220 and the local market rent of $1805, there is a reimbursement gap for landlords. Specifically, the gap is $585 per month, meaning landlords will receive less than the market rent for a two-bedroom apartment under the Section 8 program. This gap reflects the economic realities of the program and should be considered when deciding whether to participate.
To summarize, landlords in ZIP 68106 who accept Section 8 vouchers for a two-bedroom apartment will receive a total of $1220, including the tenant's contribution and utility allowances, while the local market rent is $1805. Thus, the typical reimbursement gap is $585 per month, representing the difference landlords must absorb compared to market rates.
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.