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 | $1,160 |
| 1 Bedroom | $1,210 |
| 2 Bedrooms | $1,440 |
| 3 Bedrooms | $1,910 |
| 4 Bedrooms | $2,160 |
| 5 Bedrooms | $2,506 |
| 6 Bedrooms | $2,807 |
| 7 Bedrooms | $3,032 |
| 8 Bedrooms | $3,184 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,440 | $221,741 | 0.65% | D |
| 3BR | $1,910 | $280,542 | 0.68% | D |
| 4BR | $2,160 | $371,978 | 0.58% | F |
U.S. Census Bureau data (2024)
The ZIP code 68127 in Omaha, Nebraska, presents an interesting scenario for both renters and landlords. The median income in this area stands at $66,384, while the market rate for rent, known as ZORI (Zillow Rent Index), is $1,127 per month. This means that a significant portion of the monthly income, approximately 20%, would be dedicated to housing costs for the average household. When compared to the Fair Market Rent (FMR) standard of $1,190 set for the zip code for fiscal year 2024, it becomes evident that there is a slight premium placed on rental properties by the voucher program.
The affordability gap in 68127 is substantial, considering that over half of the population, 53.1%, are renters. This high percentage of renters in a population of 20,484 indicates a robust demand for rental housing. However, with the median income being slightly below the market rate and the FMR standard only marginally higher, many households may find it challenging to secure housing without assistance. Landlords face competition not just from other property owners but also from the limited availability of housing vouchers.
For landlords, the decision between accepting vouchers or relying solely on cash-paying tenants has implications. Accepting vouchers ensures a steady stream of income, albeit at the FMR rate which is slightly above the market rate. This could be beneficial given the tight margins some households operate under. On the other hand, focusing on cash-paying tenants might offer higher immediate returns but could also lead to vacancies if the local economy does not support such rents.
The takeaway for landlords is clear: understanding the local economic conditions and the availability of housing vouchers is crucial. Given the median income and the relatively high rent-to-income ratio, landlords who are flexible and willing to consider voucher tenants may have an edge in a competitive market. This strategy could help maintain occupancy rates and ensure a stable income stream, aligning with the realities faced by many in 68127.
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.