Location: Lincoln, 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 | $780 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,430 |
| 4 Bedrooms | $1,590 |
| 5 Bedrooms | $1,844 |
| 6 Bedrooms | $2,065 |
| 7 Bedrooms | $2,230 |
| 8 Bedrooms | $2,342 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $840 | $139,713 | 0.6% | D |
| 2BR | $1,030 | $199,973 | 0.52% | F |
| 3BR | $1,430 | $261,171 | 0.55% | F |
| 4BR | $1,590 | $310,833 | 0.51% | F |
| 5BR | $1,844 | $365,741 | 0.5% | F |
U.S. Census Bureau data (2024)
ZIP 68502 in Lincoln, Nebraska, serves as a strong cash-flow anchor within a Section 8 portfolio strategy. The Federal Market Rent (FMR) for the area in fiscal year 2024 is set at $890, which exceeds the current market rent of $866. This positive spread ensures that properties in this ZIP code will generate reliable cash flow when leased under the Section 8 program.
The median home value in 68502 stands at $236,929. This figure indicates a relatively stable housing market where property values are unlikely to fluctuate drastically. For landlords and small-portfolio investors, this stability means reduced risk of losing rental income due to changes in property value or market conditions.
A key factor supporting the cash-flow anchor classification is the low price-cut share of 0.2%. This suggests that landlords do not often have to reduce their asking prices to attract tenants, thereby maintaining higher rental yields. Additionally, the average Days on Market (DOM) of 25 days shows a competitive yet manageable time frame for finding tenants, balancing the need for quick occupancy with fair rental pricing.
The 44.4% renter share and median income of $68,523 further reinforce the suitability of 68502 as a cash-flow anchor. With nearly half of the residents renting, there is a consistent demand for rental properties. Moreover, the median income provides insight into the economic health of the area, indicating that tenants are likely to be financially stable and capable of meeting their rental obligations.
In conclusion, ZIP 68502 in Lincoln, NE, is best suited as a cash-flow anchor in a Section 8 portfolio strategy. The positive spread between the FMR and market rent, combined with stable home values and a robust tenant base, ensures steady and predictable income streams for investors.
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.