What is the cap rate in Omaha, NE?

The median cap rate in Omaha, NE is 4.2%. This is based on HUD Fair Market Rents and current home values.

Is Omaha a good place to buy rental property?

Omaha has a cap rate of 4.2% and estimated cash flow of -$515/month. Returns are moderate — consider the appreciation potential. Median home price is $294,265 with average 3BR rent of $1,700/month.

What is the average rent in Omaha, NE?

The HUD Fair Market Rent for a 3-bedroom in Omaha, NE is $1,700/month. This represents the estimated rent for standard-quality housing in the area.

Omaha, NE — Rental Investment Analysis

🟡MODERATE— average returns

Data: HUD FMR FY2024 + Zillow ZHVI April 2026 + Freddie Mac rates. Last updated June 2026.

Investment Summary

As of 2026, rental properties in Omaha, NE yield a 4.2% cap rate. Median home price is $294,265 with 3-bedroom rents at $1,700/month.

Omaha is a moderate market — workable but not exceptional for cash flow. Median home price sits at $294,265 — moderate by national standards, requiring a solid down payment but not out of reach. With 3-bedroom rents around $1,700/month, the 4.2% cap rate tells the story. Cash flow is deeply negative at -$515/month with standard assumptions. This market requires appreciation to justify the investment.

At 0.60% on the 1% rule, rents are low relative to purchase prices. You'd need a significant discount from asking price to make the numbers work. DSCR of 0.66 is below 1.0, meaning rental income doesn't cover the mortgage. DSCR lenders will likely decline this market at current prices.

Bottom line: Consider Omaha only if you believe in long-term appreciation. The numbers don't support cash flow at today's prices and rates.

Data sources: HUD Fair Market Rents (FY2024), Zillow Home Value Index (April 2026), Freddie Mac Primary Mortgage Market Survey.

Cap Rate

4.2%

Below average

Monthly Cash Flow

-$515

After all expenses

Price-to-Rent

13.8

Investor-friendly

DSCR

0.66

Fails

Key Metrics

Median Home Price: $294,265
Average Rent (3BR): $1,700/mo
Price-to-Rent Ratio: 13.8(good)
1% Rule: 0.60%(fails — need 1%+)
Cash-on-Cash Return: -9.4%
Vacancy Rate: 8.0%

Market Strength

Unemployment Rate: 3%(-1.3% vs national)
Rent Growth (YoY): +2.9%(national avg)
Population Growth: -0.5% YoY

Assumptions Used

20% down, 6.52% rate, 30yr, 8% vacancy, 10% maintenance

Customize these numbers →

Property Tax Rate

1.61%

of assessed value (NE avg)

Median Income

$66,644

household (NE avg)

Rent-to-Income

30.6%

Moderate

Section 8 Max Rent

$1,700/mo

3BR voucher payment

NE Investor Climate

Landlord Friendly

7/10

State Income Tax

Has state tax

Property Tax

1.61% effective

Population Trend

-0.5% (3yr)

Population Movement (Tax Year 2021→2022)

Net Migration

-460 households

SHRINKING

Total Inflow

225,447

households moved in

Avg Income (New Residents)

$112,975

per household

Where they're coming from:

1.Douglas Non-migrants, NE222,330 households · avg $113,680

2.Dodge, NE269 households · avg -$91,041

3.Maricopa, AZ214 households · avg $87,336

4.Cass, NE169 households · avg $64,296

5.Cook, IL141 households · avg $89,440

Where residents are leaving to:

1.Douglas Non-migrants, NE222,330 households

2.Maricopa, AZ352 households

3.Dodge, NE235 households

4.Cass, NE203 households

5.Cook, IL184 households

Net outflow may indicate weakening demand — but can mean lower prices and higher cap rates.

Best Zip Codes in Omaha for Investors

68111

Cap Rate: 7.9%Cash Flow: +$172/mo$138,682

68112

Cap Rate: 7.4%Cash Flow: +$153/mo$185,343

68110

Cap Rate: 7.3%Cash Flow: +$121/mo$150,005

All Zip Codes in Omaha

Zip	Cap Rate	Cash Flow	Home Price	Rent (3BR)	DSCR
68111	7.9%	+$172	$138,682	$1,350/mo	1.23
68112	7.4%	+$153	$185,343	$1,710/mo	1.16
68110	7.3%	+$121	$150,005	$1,380/mo	1.15
68108	7.0%	+$96	$174,315	$1,550/mo	1.10
68107	6.1%	-$45	$184,367	$1,460/mo	0.95
68117	6.0%	-$78	$220,906	$1,720/mo	0.93
68102	5.3%	-$242	$274,422	$1,960/mo	0.83
68104	5.1%	-$209	$201,411	$1,400/mo	0.80
68122	4.8%	-$371	$286,217	$1,900/mo	0.76
68105	4.7%	-$329	$228,845	$1,480/mo	0.73
68106	4.6%	-$382	$254,953	$1,630/mo	0.72
68137	4.4%	-$471	$286,546	$1,780/mo	0.69
68131	4.4%	-$379	$224,106	$1,380/mo	0.68
68157	4.3%	-$510	$297,097	$1,820/mo	0.68
68164	4.3%	-$515	$294,265	$1,790/mo	0.67
68135	4.2%	-$702	$390,105	$2,350/mo	0.66
68114	4.1%	-$583	$309,215	$1,830/mo	0.65
68134	4.0%	-$509	$259,221	$1,510/mo	0.63
68118	3.8%	-$927	$423,490	$2,350/mo	0.59
68127	3.8%	-$627	$286,437	$1,590/mo	0.59
68142	3.5%	-$902	$371,109	$1,950/mo	0.54
68136	3.3%	-$1,056	$409,841	$2,080/mo	0.52
68116	3.1%	-$1,026	$379,803	$1,870/mo	0.49
68124	3.1%	-$937	$345,854	$1,700/mo	0.49
68138	3.1%	-$807	$295,003	$1,440/mo	0.49
68144	3.0%	-$892	$314,944	$1,500/mo	0.47
68130	2.9%	-$1,310	$456,019	$2,150/mo	0.46
68154	2.5%	-$1,163	$359,901	$1,540/mo	0.39
68152	2.3%	-$1,153	$340,282	$1,390/mo	0.36
68132	1.9%	-$1,372	$363,013	$1,310/mo	0.29
68022	1.8%	-$1,965	$514,254	$1,830/mo	0.28