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 | $1,410 |
| 1 Bedroom | $1,470 |
| 2 Bedrooms | $1,750 |
| 3 Bedrooms | $2,320 |
| 4 Bedrooms | $2,630 |
| 5 Bedrooms | $3,051 |
| 6 Bedrooms | $3,417 |
| 7 Bedrooms | $3,690 |
| 8 Bedrooms | $3,875 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,750 | $244,196 | 0.72% | D |
| 3BR | $2,320 | $282,848 | 0.82% | C |
| 4BR | $2,630 | $375,573 | 0.7% | D |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 68157 in Omaha, NE, provides valuable insights into investment potential. For a two-bedroom unit, the Fair Market Rent (FMR) set by HUD for fiscal year 2024 is $1360 per month. When annualized, this translates to an annual rental income of $16,320. The median home value in this area stands at $293,635.
To calculate the gross yield based on the FMR, divide the annual rental income by the property value: $16,320 / $293,635 = 0.0556, or approximately 5.56%. This represents the implied gross yield if a landlord were to participate in the Section 8 program.
In contrast, the market rent for a similar two-bedroom unit is $1,418 per month, according to the latest Census ACS data. Annualizing this figure gives an annual rental income of $17,016. The gross yield under market conditions would be $17,016 / $293,635 = 0.0579, or roughly 5.79%.
The difference between these two gross yields is marginal, with market rent yielding slightly higher returns than Section 8 rates. However, the reality of investment in ZIP 68157 must account for several factors. Notably, the renter density is 24.6%, indicating that a significant portion of the population owns homes rather than renting. This could affect the demand for rental properties, including those participating in the Section 8 program.
Additionally, the N/A-day DOM (Days on Market) suggests there is either insufficient data or a lack of consistent trends regarding how quickly rental units are occupied. This uncertainty can impact the reliability of the Section 8 scenario versus the market rent scenario.
Given these considerations, while the market rent scenario offers a marginally higher gross yield, the actual occupancy rates and tenant preferences will play a crucial role in determining which scenario is more realistic. Landlords should weigh the benefits of steady, government-backed rental income against the potential for higher market rents and adjust their investment strategy accordingly.
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.