Section 8 Fair Market Rent (FMR) for ZIP 68516 - 2027

Investment Score for ZIP 68516

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	$1,130
1 Bedroom	$1,210
2 Bedrooms	$1,470
3 Bedrooms	$2,040
4 Bedrooms	$2,290
5 Bedrooms	$2,656
6 Bedrooms	$2,975
7 Bedrooms	$3,213
8 Bedrooms	$3,374

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
1BR	$1,210	$469,712	0.26%	F
2BR	$1,470	$324,220	0.45%	F
3BR	$2,040	$350,399	0.58%	F
4BR	$2,290	$453,268	0.51%	F
5BR	$2,656	$530,914	0.5%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 68516 (Lincoln, NE) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 68516, as provided by HUD for 2026, are as follows: - 0BR: $990 - 1BR: $1070 - 2BR: $1320 (which is 15.7% of the median household income) - 3BR: $1840 - 4BR: $1980 These FMRs represent the maximum rent that a Section 8 voucher holder can pay. However, it is important to note that these figures are often lower than what landlords might charge in the local rental market. For instance, the Zillow median price for a 2BR property in this area is $321,818, which translates to a monthly mortgage payment of approximately $1,580 based on a 4.5% interest rate over a 30-year term. This implies that the price-to-FMR ratio for a 2BR unit is about 20.3x, meaning that the actual market rent is significantly higher than the FMR. This disparity creates a constraint for voucher holders, who may find it challenging to secure housing within their budget. The high price-to-FMR ratio suggests that landlords may be less inclined to accept Section 8 vouchers due to the potential for lower rental income compared to market rates. #### Affordability & Renter Profile ZIP code 68516 has a population of 48,903, with 31.7% of residents being renters. The occupancy rate is 97.3%, indicating a very tight rental market where nearly all available units are occupied. Given the median household income of $100,821, the affordability of housing is a significant concern for many renters, especially those relying on Section 8 vouchers. The median income suggests that the typical resident in this area could afford a 2BR unit priced at $1320 per month, which is only 15.7% of their income. However, the actual market rent for such units is much higher, making it difficult for low-income renters to find affordable housing without assistance. The tight market conditions exacerbate this issue, as there is limited availability of units that fall within the FMR range. #### Investor Angle From an investor perspective, the ZIP code 68516 presents both opportunities and challenges. The high price-to-FMR ratio indicates that the actual market rent is substantially above the FMR, which means that landlords accepting Section 8 vouchers would likely receive lower rent payments compared to market rates. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical expenses associated with owning and renting out a property. Assuming a 2BR unit with a market rent of $1,580 and an FMR of $1320, the difference is $260 per month. If we factor in other costs like maintenance, insurance, and property taxes, the net cash flow at FMR could be negative or barely positive. For example, if the total monthly expenses were around $1,400, then the cash flow at FMR would be $1,320 - $1,400 = -$80 per month. Given the high price-to-FMR ratio and the tight rental market, the investment grade for properties in this ZIP code would be considered moderate to low for Section 8-focused investors. While there is demand for rental units, the financial constraints imposed by FMR limits make it less attractive for investors seeking high returns. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units, such as 0BR or 1BR, where the gap between FMR and market rent is narrower. For instance, a 1BR unit with an FMR of $1070 and a market rent of $1,200 would have a smaller shortfall of $130 per month, compared to a 2BR unit with a shortfall of $260. 2. **Consider Location-Specific Strategies**: Within ZIP code 68516, certain neighborhoods may have more affordable housing options. Investors should conduct further research to identify areas where the market rent is closer to the FMR. Additionally, targeting properties near public transportation, universities, or employment centers can help attract tenants willing to pay closer to market rates. 3. **Explore Alternative Rental Assistance Programs**: Since the FMR is significantly lower than market rents, investors might want to explore alternative rental assistance programs that offer higher subsidies. These programs could include state-specific housing assistance initiatives or other federal programs that provide more generous support. #### Bottom Line Based on the provided data, the recommendation for Section 8-focused investors in ZIP code 68516 is to **Skip** this market. The high price-to-FMR ratio and tight rental market conditions make it challenging to achieve positive cash flow when relying solely on Section 8 vouchers. Investors looking to maximize returns should consider markets with a lower price-to-FMR ratio or where there is a higher percentage of voucher holders relative to the overall rental population.

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.