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 | $1,130 |
| 1 Bedroom | $1,180 |
| 2 Bedrooms | $1,400 |
| 3 Bedrooms | $1,860 |
| 4 Bedrooms | $2,100 |
| 5 Bedrooms | $2,436 |
| 6 Bedrooms | $2,728 |
| 7 Bedrooms | $2,946 |
| 8 Bedrooms | $3,093 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,180 | $154,553 | 0.76% | D |
| 2BR | $1,400 | $208,385 | 0.67% | D |
| 3BR | $1,860 | $215,070 | 0.86% | C |
| 4BR | $2,100 | $249,077 | 0.84% | C |
| 5BR | $2,436 | $301,229 | 0.81% | C |
U.S. Census Bureau data (2024)
The analysis for the Section 8 program in ZIP code 68131, 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 $1,030, while the Zillow Observed Rent Index (ZORI) indicates that the market rent is $1,537. This means that landlords can expect a shortfall of $507 per month if they choose to participate in the Section 8 program, representing a 33% discount off the market rate.
In Omaha, where 75.6% of residents are renters, and the median home value stands at $215,997, the median income is relatively low at $48,925. Given these economic conditions, the disparity between the FMR and the market rent becomes even more pronounced. The lower FMR reflects the government's effort to subsidize housing costs for low-income families, but it also imposes a financial burden on landlords who must accept payments significantly below what the market would bear.
The cost of housing voucher tenants below open-market rates is substantial. With a $507 monthly shortfall, landlords must consider whether the long-term stability and reduced vacancy risk offered by the Section 8 program outweigh the immediate loss in rental income. In a city where the majority of residents are already renters, the demand for affordable housing is high, making the Section 8 program an essential part of the rental market.
Landlords and small-portfolio investors should be aware that participating in the Section 8 program requires adherence to federal guidelines and regulations, which can sometimes lead to additional administrative burdens. However, the benefits of having a consistent tenant base and lower turnover rates might offset some of these costs. It is crucial to weigh the financial implications against the potential for steady cash flow and property management simplicity.
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.