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 | $1,150 |
| 1 Bedroom | $1,200 |
| 2 Bedrooms | $1,430 |
| 3 Bedrooms | $1,900 |
| 4 Bedrooms | $2,150 |
| 5 Bedrooms | $2,494 |
| 6 Bedrooms | $2,793 |
| 7 Bedrooms | $3,016 |
| 8 Bedrooms | $3,167 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,430 | $228,746 | 0.63% | D |
| 3BR | $1,900 | $256,499 | 0.74% | D |
| 4BR | $2,150 | $301,383 | 0.71% | D |
| 5BR | $2,494 | $348,448 | 0.72% | D |
U.S. Census Bureau data (2024)
In ZIP 68134, located in Omaha, Nebraska, and part of Douglas County, the Section 8 housing program operates under specific economic guidelines that directly impact landlords and small-portfolio investors. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for FY 2024 is set at $1130. This figure represents the maximum amount that the government will pay for a rental unit of this size, which is tailored specifically to the cost of living in this particular ZIP code.
The local market rent, as measured by ZORI (Zillow Observed Rent Index), for a similar two-bedroom apartment in ZIP 68134 is $1017. This indicates that the SAFMR is higher than the average market rent, providing landlords with an opportunity to receive slightly above-market rates when participating in the Section 8 program.
A landlord's actual reimbursement from a Section 8 voucher is determined by several factors including the tenant's portion of the rent and any applicable utility allowances. Tenants typically contribute 30% of their adjusted income towards rent. If we assume a tenant's adjusted income is such that they would contribute $300 towards the rent, the total monthly payment to the landlord would be the sum of the tenant's contribution and the government's subsidy up to the SAFMR limit. In this scenario, the landlord would receive $1030 per month from the government plus the $300 from the tenant, totaling $1330.
However, it's important to note that the government's subsidy does not always cover the entire difference between the tenant's contribution and the SAFMR. If the combined tenant payment and government subsidy exceed the SAFMR, the landlord will only receive the maximum SAFMR amount of $1130. Therefore, the landlord's total reimbursement would be the SAFMR plus the tenant's contribution, which is $1130 + $300 = $1430.
Given the local market rent of $1017, a landlord participating in the Section 8 program in ZIP 68134 can expect a surplus of approximately $413 per month on a two-bedroom unit, assuming the tenant contributes $300 towards the rent. This surplus arises because the combined SAFMR and tenant contribution exceeds the prevailing market rent in the area.
To summarize, the economics of Section 8 in ZIP 68134 provide landlords with a unique opportunity to secure rental payments that are competitive and potentially above the local market rate, leading to a positive financial outcome. The key to understanding the reimbursement is to factor in both the government subsidy and the tenant's contribution, which together can result in a surplus compared to the average market rent.
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.