Section 8 Fair Market Rent (FMR) for ZIP 68504 - 2027

Location: Lincoln, NE | Metro: Lincoln, NE HUD Metro FMR Area

Investment Score for ZIP 68504

Monthly Rent (2BR)

$1,170

Median Price (2BR)

$195,282

1% Rule

0.6%

Annual Yield

7.19%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$900
1 Bedroom	$960
2 Bedrooms	$1,170
3 Bedrooms	$1,620
4 Bedrooms	$1,820
5 Bedrooms	$2,111
6 Bedrooms	$2,364
7 Bedrooms	$2,553
8 Bedrooms	$2,681

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,170	$195,282	0.6%	F
3BR	$1,620	$237,294	0.68%	D
4BR	$1,820	$262,540	0.69%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

17,278

Median Household Income

$56,213

Housing Units

8,833

Renter Percentage

68.5%

Occupancy Rate

93.9%

Renter Occupied

5,686

The Lincoln, Nebraska area, specifically ZIP code 68504, offers a stable and attractive market for real estate investments. With a diverse population that includes students, young professionals, and families, this region benefits from a mix of demand drivers. Here's a concise analysis based on key metrics:

Fair Market Rent (FMR) for a two-bedroom apartment in ZIP 68504 for fiscal year 2024 is set at $1,000. This indicates the government benchmark for rental pricing, which is often used to determine eligibility for housing assistance programs.
The market rent, as measured by Zillow's ZORI index, stands at $1,250 for a similar unit. This suggests that the private market rents exceed the FMR, providing a potential profit margin for landlords and investors.
The median home value in this ZIP code is $222,616. This figure reflects the typical price of homes in the area, offering insight into the overall property values and potential appreciation rates.
Renters make up 68.5% of the residential units in ZIP 68504. A high percentage of renters signals strong demand for rental properties, which can be beneficial for those looking to invest in multi-family or single-family rental units.
The median household income in the area is $56,213. This provides context on the financial capacity of residents to afford higher rents, indicating a reasonable balance between affordability and rental prices.
The Days on Market (DOM) for properties is not available. While this metric would typically help gauge how quickly properties sell, its absence here does not significantly impact the overall analysis given the other robust indicators.

The combination of a high renter share and market rents exceeding the FMR suggests that Lincoln, NE's ZIP 68504 is a favorable environment for landlords and small-portfolio investors. The median home value and income levels indicate a balanced market where rental properties can command reasonable rates without being prohibitively expensive for tenants. Given these factors, investing in rental properties in this ZIP code is likely to yield positive returns and maintain steady occupancy rates.

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.