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 | $1,180 |
| 1 Bedroom | $1,240 |
| 2 Bedrooms | $1,470 |
| 3 Bedrooms | $1,950 |
| 4 Bedrooms | $2,210 |
| 5 Bedrooms | $2,564 |
| 6 Bedrooms | $2,872 |
| 7 Bedrooms | $3,102 |
| 8 Bedrooms | $3,257 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,470 | $275,837 | 0.53% | F |
| 3BR | $1,950 | $320,843 | 0.61% | D |
| 4BR | $2,210 | $434,842 | 0.51% | F |
| 5BR | $2,564 | $592,291 | 0.43% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP 68154 in Omaha, NE reveals several key points regarding its viability for Section 8 real-estate investments. First, the rent math does not work favorably for landlords. The Fair Market Rent (FMR) set at $1,150 for fiscal year 2024 is notably lower than the actual market rent, which stands at $1,267 according to ZORI (Zillow Observed Rent Index). This discrepancy means that landlords may face a shortfall if they rely solely on Section 8 payments to cover their rental costs.
Second, the acquisition cost is relatively affordable for potential investors. The median home value in the area is $357,191. With an average of only 16 days on the market (DOM) and a low price-cut share of just 0.2%, it indicates that homes in this ZIP code sell quickly without significant reductions in price. This suggests a stable and competitive market for property purchases, making it easier for new investors to enter the market without overpaying.
Lastly, there is a robust tenant demand in ZIP 68154. The total population is 24,060, with a substantial 42.9% of residents being renters. This high percentage of renters underscores the need for affordable housing options, creating a solid base of potential Section 8 tenants who can occupy properties.
In conclusion, while the rent math does not favor landlords due to the lower FMR compared to the market rent, the affordability of acquisitions and strong tenant demand make ZIP 68154 a viable investment area for those willing to navigate the financial challenges. The quick turnover of properties and minimal price adjustments suggest a healthy market for buying, even if the returns from Section 8 rentals are modest. For small-portfolio investors looking for stability and a steady stream of tenants, this ZIP code presents a reasonable opportunity despite the inherent financial constraints.
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.