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 | $1,000 |
| 1 Bedroom | $1,060 |
| 2 Bedrooms | $1,300 |
| 3 Bedrooms | $1,800 |
| 4 Bedrooms | $2,020 |
| 5 Bedrooms | $2,343 |
| 6 Bedrooms | $2,624 |
| 7 Bedrooms | $2,834 |
| 8 Bedrooms | $2,976 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,300 | $572,410 | 0.23% | F |
| 3BR | $1,800 | $461,320 | 0.39% | F |
| 4BR | $2,020 | $492,189 | 0.41% | F |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP Code 68523, Lincoln, NE, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1,280. In contrast, the median market rent for houses in ZIP 68523 is $1,850, according to recent data from HotPads. This means that the FMR is $570 lower than the market rent, representing a 31% discount.
The gap between FMR and market rent indicates that landlords who accept Section 8 vouchers are effectively renting their properties below the open-market rates. Given that only 5.8% of the population in Lincoln are renters, competition for rental units is relatively low, making it even more critical for landlords to understand the financial implications of accepting voucher tenants.
In Lincoln, where the median home value is $503,236 and the median household income is $141,786, landlords must consider the economic context when deciding whether to participate in the Section 8 program. Accepting voucher tenants can be seen as a yield play, where landlords aim to maximize the return on investment by renting out units that might otherwise remain vacant due to the limited rental market.
However, landlords should also be aware of the potential downsides. Renting below market rates can reduce cash flow and profit margins. Additionally, the process of working with the government to ensure compliance with Section 8 regulations can be time-consuming and administratively burdensome.
To summarize, the gap between the FMR of $1,280 and the market rent of $1,850 in ZIP 68523 represents a 31% discount. This makes the decision to accept Section 8 vouchers a strategic choice that depends on the landlord's goals for occupancy and cash flow, as well as their willingness to navigate the administrative requirements associated with the program.
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.