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 | $1,760 |
| 1 Bedroom | $1,830 |
| 2 Bedrooms | $2,180 |
| 3 Bedrooms | $2,890 |
| 4 Bedrooms | $3,280 |
| 5 Bedrooms | $3,805 |
| 6 Bedrooms | $4,262 |
| 7 Bedrooms | $4,603 |
| 8 Bedrooms | $4,833 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,180 | $372,517 | 0.59% | F |
| 3BR | $2,890 | $332,978 | 0.87% | C |
| 4BR | $3,280 | $529,722 | 0.62% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 68142, located in Omaha, Nebraska, within Douglas County, are defined by the SAFMR (Small Area Fair Market Rent) which is specifically tailored for this ZIP code. For a two-bedroom apartment in FY 2024, the SAFMR is set at $1460. This figure represents the maximum amount that the housing authority will pay towards the rent subsidy for a tenant living in this ZIP code.
In comparison, the local market rent for a similar two-bedroom unit in ZIP 68142 is reported at $2,096 according to the Census ACS (American Community Survey). This indicates that landlords who participate in the Section 8 program might find themselves dealing with a significant difference between the subsidized rent and the market value.
A landlord's actual reimbursement under a Section 8 voucher includes the tenant's portion of the rent plus any utility allowances. Typically, tenants contribute 30% of their adjusted income toward the rent. If we assume an average adjusted income for a tenant in this area, the tenant's contribution would be around $628.80 per month, calculated as 30% of the market rent of $2,096. However, the actual amount varies based on individual tenant income.
The utility allowance is an additional payment made directly to the landlord, which covers part of the tenant's utility costs. This allowance can vary but is generally set to cover the average cost of utilities in the area. In ZIP 68142, the utility allowance is not specified in the provided data, so it must be obtained from the local housing authority.
To calculate the total reimbursement a landlord receives, add the tenant's contribution to the SAFMR and the utility allowance. For example, if the utility allowance is $300, the total reimbursement would be $1460 (SAFMR) + $628.80 (tenant's share) + $300 (utility allowance) = $2,388.80. This calculation assumes the tenant's income is such that they contribute the average 30% toward rent.
Given the local market rent of $2,096, the total reimbursement of $2,388.80 would result in a surplus for the landlord. However, if the utility allowance is lower or the tenant's income is less, the reimbursement could fall short of the market rent. To determine the exact reimbursement gap or surplus, you need to know the precise utility allowance and the tenant's income.
In ZIP 68142, landlords participating in Section 8 should expect a reimbursement that either meets or slightly exceeds the market rent, depending on the specific utility allowance and the tenant's income contribution. The SAFMR of $1460 provides a baseline subsidy that, when combined with other components of the voucher, can offer a stable rental income that is competitive with the local market.
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.