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 | $820 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,470 |
| 4 Bedrooms | $1,650 |
| 5 Bedrooms | $1,914 |
| 6 Bedrooms | $2,144 |
| 7 Bedrooms | $2,316 |
| 8 Bedrooms | $2,432 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $870 | $212,953 | 0.41% | F |
| 2BR | $1,060 | $212,006 | 0.5% | F |
| 3BR | $1,470 | $266,845 | 0.55% | F |
| 4BR | $1,650 | $357,009 | 0.46% | F |
U.S. Census Bureau data (2024)
ZIP code 68507 is located in Lincoln, Nebraska, and represents a vibrant, moderately sized neighborhood with a population of 16,029. The area has a significant rental market, with 33.5% of residents being renters, indicating a steady demand for rental properties. Median household income in the neighborhood stands at $69,488, which suggests a middle-class demographic. The median home value in ZIP 68507 is $248,553, reflecting a mix of affordable and moderate-priced homes.
The rental economics in this neighborhood present an interesting opportunity. The Fair Market Rent (FMR) for ZIP 68507, set by HUD for fiscal year 2024, is $1,020. This figure is notably lower than the market rent, which is estimated at $1,741 according to ZORI (Zillow Observed Rent Index). This discrepancy highlights the potential for landlords and investors to capitalize on the higher market rents while still serving tenants who qualify for Section 8 housing assistance.
Given these economic conditions, ZIP 68507 would be well-suited for both hands-off voucher operators and hands-on value-add buyers. For those looking for a hands-off approach, the stable tenant base and the gap between FMR and market rents can provide a reliable income stream with minimal management effort. On the other hand, value-add investors could find opportunities to renovate properties and increase their rental rates closer to the market average, thereby maximizing returns on investment. Both strategies benefit from the strong rental demand and the middle-income status of the neighborhood.
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.