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 | $880 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,670 |
| 5 Bedrooms | $1,937 |
| 6 Bedrooms | $2,169 |
| 7 Bedrooms | $2,343 |
| 8 Bedrooms | $2,460 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $880 | $164,413 | 0.54% | F |
| 2BR | $1,070 | $187,883 | 0.57% | F |
| 3BR | $1,480 | $235,784 | 0.63% | D |
| 4BR | $1,670 | $241,336 | 0.69% | D |
U.S. Census Bureau data (2024)
The real estate market in ZIP 68508 (Lincoln, NE) presents a nuanced picture that landlords and small-portfolio investors should carefully consider. With a median home value of $217,746, the market signals a moderate pricing environment, neither overheated nor underperforming. The absence of percentage reductions in listings and the unspecified median days on market (DOM) suggest stability in the local housing market, implying that sellers have maintained their pricing power. This stability is likely to continue over the next 12-24 months, as there is no indication of significant market shifts that would disrupt the current equilibrium.
On the rental side, the Federal Market Rent (FMR) for ZIP 68508 is projected at $900 for fiscal year 2024, slightly below the current market rent indicated by ZORI at $913. This suggests a minor gap between government-assisted rents and the broader market rates, which could be an opportunity for landlords participating in Section 8 programs to leverage the difference for higher yields. However, the narrow margin also points to a competitive rental market where landlords must balance property maintenance costs against rental income to remain profitable.
For long-term investors, the setup in ZIP 68508 implies a modest appreciation thesis. The combination of stable home values and a slight divergence between FMR and market rents indicates a steady growth scenario rather than rapid appreciation. Investors should anticipate a gradual increase in property values, driven by consistent economic growth and stable demand in Lincoln's housing market. This approach aligns with a conservative investment strategy, focusing on long-term gains rather than speculative short-term opportunities.
The overall market conditions in ZIP 68508 favor those who are willing to hold properties for extended periods, benefiting from the slow but steady accumulation of value. Landlords and investors should be prepared for a market that requires patience and careful management to capitalize on the inherent stability and potential for gradual appreciation.
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.