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 | $960 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,580 |
| 4 Bedrooms | $1,790 |
| 5 Bedrooms | $2,076 |
| 6 Bedrooms | $2,325 |
| 7 Bedrooms | $2,511 |
| 8 Bedrooms | $2,637 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,580 | $349,653 | 0.45% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 68407 within the Omaha-Council Bluffs, NE-IA HUD Metro FMR Area reveals several key points for landlords and small-portfolio investors. First, let's examine if the rent math works. The Fair Market Rent (FMR) set by HUD for FY 2024 is $1070. However, the Census ACS indicates that the current market rent is $1,045. This suggests that landlords can expect to charge slightly below the FMR but still remain competitive in the market.
Moving on to the affordability of acquisitions, the median home value in ZIP 68407 stands at $319,251. Given that the data on days on market (DOM) and the percentage of homes that had their price cut is not available, it's crucial to consider the median home value as a primary indicator. At this value, the acquisition cost is moderate, suggesting that purchasing properties might be feasible for investors with a mid-range budget.
To assess tenant demand, we look at the population and rental statistics. With a total population of 878, and 15.0% of those being renters, the demand for rental properties is relatively low. This means that while there are tenants looking for housing, the competition among rental units could be high, potentially affecting vacancy rates and rental income stability.
In conclusion, ZIP 68407 offers a balanced scenario where the rent can be set close to the FMR without significant market disadvantage. Acquisition costs are manageable, though the lack of detailed market activity metrics introduces some uncertainty. Tenant demand is limited, which could lead to higher competition among landlords. Investors should proceed with caution, considering the smaller tenant pool and ensuring thorough due diligence before committing to property acquisitions in this area.
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.