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 | $1,110 |
| 1 Bedroom | $1,180 |
| 2 Bedrooms | $1,440 |
| 3 Bedrooms | $1,990 |
| 4 Bedrooms | $2,240 |
| 5 Bedrooms | $2,598 |
| 6 Bedrooms | $2,910 |
| 7 Bedrooms | $3,143 |
| 8 Bedrooms | $3,300 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,180 | $644,259 | 0.18% | F |
| 2BR | $1,440 | $257,183 | 0.56% | F |
| 3BR | $1,990 | $322,533 | 0.62% | D |
| 4BR | $2,240 | $478,904 | 0.47% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,300 for ZIP 68512 in fiscal year 2024 will adequately cover the mortgage on a $348,118 home. To address this concern, we must first calculate an estimated mortgage payment. Using a typical mortgage calculator, assuming a 30-year fixed rate mortgage with a 4% interest rate and a 20% down payment, the monthly mortgage payment for a $348,118 home would be approximately $1,400. This figure is just above the proposed FMR, indicating that landlords could face a slight shortfall unless they factor in additional revenue sources such as property taxes or consider increasing the down payment to reduce the monthly mortgage burden.
The investor might also doubt if the 34.4% renter demand is sufficient to ensure steady occupancy rates. According to recent housing market data for ZIP 68512, the median listing price for homes is around $1,750, suggesting a robust rental market. While the 34.4% renter demand rate may seem low, it's important to note that this percentage reflects the overall housing situation. In reality, the rental market in ZIP 68512 appears to be strong, with ample opportunities for landlords to attract tenants. However, it's crucial to monitor local economic conditions and job markets to ensure that rental demand remains consistent over time.
Another objection could be whether Housing Choice Vouchers will keep pace with the $1,513 average market rent. Unfortunately, the data does not provide specific trends regarding voucher usage in ZIP 68512. However, it's worth noting that voucher holders often have a preference for lower-cost housing options. Given that the FMR is set at $1,300, landlords who aim to maximize their rental income may find that voucher recipients prefer units priced closer to the FMR rather than the higher market rent. To mitigate this risk, landlords should consider the potential for a mix of voucher and market-rate tenants, ensuring a balanced approach to occupancy and income generation.
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.