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 | $1,390 |
| 1 Bedroom | $1,450 |
| 2 Bedrooms | $1,730 |
| 3 Bedrooms | $2,300 |
| 4 Bedrooms | $2,600 |
| 5 Bedrooms | $3,016 |
| 6 Bedrooms | $3,378 |
| 7 Bedrooms | $3,648 |
| 8 Bedrooms | $3,830 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,730 | $241,717 | 0.72% | D |
| 3BR | $2,300 | $283,685 | 0.81% | C |
| 4BR | $2,600 | $362,694 | 0.72% | D |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP 68137 in Omaha, NE, reveals some key insights into potential investment returns. The Fair Market Rent (FMR) for a 2-bedroom apartment in FY 2024 is set at $1,330 per month, while the market rent, as indicated by ZORI (Zillow Observed Rent Index), stands at $1,643 monthly.
To derive the gross yield, we annualize these figures and compare them against the median home value of $283,729. For the FMR scenario, the annualized rent is $15,960 ($1,330 x 12 months). This translates to an implied gross yield of approximately 5.63%, calculated as follows:
In contrast, using the market rent figure of $1,643 per month, the annualized rent amounts to $19,716 ($1,643 x 12 months). This yields a higher implied gross yield of about 7.0%, calculated as:
Given the 36.8% renter density and a 20-day Days on Market (DOM), the market rent scenario appears more realistic. The higher renter density suggests a robust demand for rental properties, while the relatively low DOM indicates that properties are quickly rented out, reducing vacancy rates and increasing the likelihood of achieving market rents.
However, it's important to note that the FMR scenario reflects the maximum allowable rent for Section 8 tenants, which could be lower due to tenant income levels. Therefore, the actual gross yield might fall between these two figures. Landlords should consider the specifics of their property, including location, amenities, and condition, when determining the most likely rental income.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.