Section 8 Fair Market Rent (FMR) for ZIP 68526 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Housing Authorities Serving ZIP 68526

• Lincoln Housing Authority (Lincoln, NE) - 3,388 Section 8 vouchers

To determine if you should invest in ZIP 68526 (Lincoln, NE) for Section 8 properties, follow this decision tree:

1) Does the Fair Market Rent (FMR) of $1420 cover the debt service on a $462,522 property?

• Yes: The FMR of $1420 can potentially cover the debt service, assuming standard financing terms. For instance, a typical mortgage payment for a property priced at $462,522 might be around $1,900-$2,100 per month, depending on interest rates and loan terms. Given that the FMR is $1420, you would need to ensure that other income sources or cost savings strategies, such as tax benefits or low maintenance costs, make up the difference.
• No: If the FMR of $1420 does not cover the debt service, then investing in this ZIP code for Section 8 purposes is not advisable unless you can secure a lower-cost property or find ways to reduce expenses significantly.
• It Depends: The outcome hinges on the specifics of your financing and management strategy. If you can negotiate a lower purchase price or find a property with minimal renovation needs, the FMR might suffice. Otherwise, the gap between FMR and debt service could be too large.

2) Is the market rent ($1,381 ZORI) above, at, or below the FMR?

• Above: With market rents higher than the FMR, there's potential to earn more by renting outside of Section 8. However, this also indicates that Section 8 tenants might struggle to afford market-rate housing, increasing their reliance on subsidized options.
• At: If the ZORI equals the FMR, then Section 8 tenants pay exactly what the market demands. This scenario provides stability but limits upside potential.
• Below: When ZORI is below the FMR, Section 8 tenants can afford market-rate housing, reducing their dependence on subsidies. This could mean fewer applications and less competition for Section 8 vouchers.

3) Are 26.0% renters and N/A-day days on the market (DOM) enough demand?

• Yes: A 26.0% rental rate suggests a decent portion of the population is looking for rental properties. Combined with the fact that properties sell quickly (indicated by N/A-day DOM), this ZIP code has strong demand. Landlords can expect a steady flow of tenants and quick turnover.
• No: If the rental rate is too low and DOM is high, demand is insufficient. In ZIP 68526, however, the 26.0% rental rate and quick sales indicate sufficient demand.
• It Depends: Demand is good, but it ultimately depends on your investment goals. If you aim for quick cash flow, this ZIP code suits your needs. If you're looking for long-term appreciation, consider other factors like neighborhood growth and local job markets.

Based on the provided data, ZIP 68526 presents a balanced opportunity for Section 8 investments. The key is aligning your financial expectations and management capabilities with the realities of the market and tenant needs.

Data Sources: FMR data from HUD (2027). 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.