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 |
|---|---|---|---|---|
| 2BR | $1,400 | $239,496 | 0.58% | F |
| 3BR | $1,860 | $297,646 | 0.62% | D |
| 4BR | $2,100 | $370,857 | 0.57% | F |
| 5BR | $2,436 | $437,444 | 0.56% | F |
U.S. Census Bureau data (2024)
Skeptical investors often question whether the Fair Market Rent (FMR) of $1,120 for ZIP 68144 in Omaha, NE, will sufficiently cover the mortgage on a $310,914 home. According to recent data, the median home value in this ZIP code is lower than the state's median of $245,200, indicating that a home priced at $310,914 may be above the typical valuation. However, the FMR is designed to reflect the rental market conditions, and while it might not cover the entire mortgage payment, it does provide a benchmark for the local rental rates.
The rental vacancy rate of 10.4% in ZIP 68144 is significantly higher than the Nebraska average of 5.6%, which raises concerns about whether there is enough renter demand at 33.3%. A higher vacancy rate suggests that there could be challenges in maintaining occupancy levels, especially if the demand is only at 33.3%. This indicates that landlords should consider the potential for vacancies when planning their investment strategies.
Another common concern is whether Section 8 vouchers will keep pace with market rents, currently estimated at $1,245. While the FMR of $1,120 is slightly below the market rent, the gap is relatively small. However, the data does not provide specific information regarding the wait times for Section 8 vouchers in ZIP 68144. This lack of information means that landlords cannot predict how quickly they can expect to fill units with voucher holders. It is important to note that voucher programs aim to adjust their payments periodically to align with market conditions, but the timing and extent of these adjustments can vary.
In conclusion, while there are valid concerns regarding the ability of FMR to cover mortgage payments, the level of renter demand, and the pace of voucher increases, the data provides a basis for understanding the local market. Investors must weigh these factors carefully and consider diversifying their portfolios to mitigate risks associated with individual ZIP codes.
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.