Location: Gage County, NE | Metro: Lincoln, NE 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 | $1,000 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,440 |
| 3 Bedrooms | $1,720 |
| 4 Bedrooms | $2,250 |
| 5 Bedrooms | $2,610 |
| 6 Bedrooms | $2,923 |
| 7 Bedrooms | $3,157 |
| 8 Bedrooms | $3,315 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,720 | $287,721 | 0.6% | F |
U.S. Census Bureau data (2024)
Households in ZIP code 68331, with a median income of $96,250, face a challenging rental market where the average cost is $1,075 per month. This figure is derived from the Census Bureau's American Community Survey (ACS), which provides reliable data on local rental rates. The Federal Market Rent (FMR) for the area, set at $1070 for fiscal year 2024, closely aligns with the market rate but still presents an affordability issue.
The primary concern for renters is the discrepancy between their income and the cost of housing. At $1,075, the market rate represents approximately 13.2% of the median monthly income. This percentage is high and suggests that many households might struggle to meet these costs without financial strain. Moreover, only 6.3% of the 1,002 residents in this ZIP code are renters, indicating a relatively low demand for rental properties compared to other areas.
The affordability gap means that landlords in 68331 will likely face stiff competition when seeking tenants willing to pay the market rate. Given the tight alignment between the market rate and the FMR, landlords should consider the benefits of accepting Section 8 vouchers. While voucher payments ensure a steady income source, they also require compliance with HUD regulations and may limit the pool of potential tenants to those qualified for the program.
For landlords weighing voucher versus cash-pay strategies, the key takeaway is that accepting Section 8 vouchers can be a viable option due to the limited number of renters and the high cost of living relative to income. However, it is essential to balance this strategy with maintaining flexibility to attract non-voucher tenants who can pay the full market rate. A mixed approach, where landlords accept both voucher and cash-paying tenants, may provide the best opportunity to maximize occupancy and revenue in ZIP 68331.
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.