Location: Omaha-Council Bluffs, NE | Metro: Omaha-Council Bluffs, NE-IA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,650 |
| 1 Bedroom | $1,720 |
| 2 Bedrooms | $2,050 |
| 3 Bedrooms | $2,720 |
| 4 Bedrooms | $3,080 |
| 5 Bedrooms | $3,573 |
| 6 Bedrooms | $4,002 |
| 7 Bedrooms | $4,322 |
| 8 Bedrooms | $4,538 |
U.S. Census Bureau data (2024)
The Section 8 analysis for ZIP code 68136 in Omaha, Nebraska, highlights a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1560, whereas the Zillow Observed Rent Index (ZORI) indicates that the market rent stands at $1779. This discrepancy amounts to a difference of $219, or approximately 14%, between what voucher holders can pay and the open-market rental rates.
In this context, landlords and small-portfolio investors should be aware that accepting Section 8 vouchers means renting properties at a rate lower than the prevailing market conditions. Given that only 10.8% of residents in Omaha are renters, the demand for rental properties is relatively low compared to homeownership, where the median home value is $407,651. Additionally, the median household income in Omaha is $133,472, suggesting that many residents prefer owning homes over renting.
The cost of housing voucher tenants below open-market rates is a critical consideration. Accepting a tenant who pays $1560 under the FMR scheme leaves a landlord $219 short of the market rent of $1779. This shortfall can impact the overall profitability and cash flow of an investment property. However, the stability and reliability of Section 8 payments can mitigate some risks associated with non-payment, making it a viable strategy despite the lower yields.
To summarize, the gap between FMR and market rent in ZIP 68136 is a key factor in deciding whether to accept Section 8 vouchers. While the lower rent may reduce immediate profitability, it provides a consistent income stream, which is valuable given the broader economic context of Omaha, including its high median home values and income levels.
Data Sources: FMR data from HUD (2027). 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.