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Lincoln vs Omaha:
Housing Costs in Nebraska

Side-by-side comparison of home prices, mortgage payments, and housing costs between Lincoln and Omaha, Nebraska. Using Nebraska's 1.73% property tax rate and $2,800/year insurance. Updated for 2026.

MetricLincolnOmaha
Median Home Price$265K$275K
Population291,082486,051
Average Rent$1,120/mo$1,180/mo
Est. Monthly Mortgage (P&I)$1,507/mo$1,564/mo
Est. Monthly Property Tax$382/mo$396/mo
Est. Monthly Insurance$233/mo$233/mo
Est. Total PITI$2,222/mo$2,297/mo
Price-to-Rent Ratio19.719.4
Verdict

Lincoln edges out Omaha in affordability, saving you roughly $75/month on total housing costs. Both cities are in Nebraska, so property tax rates and insurance costs are the same — the difference comes down to home prices and what you get for your money in each market.

Monthly Payment Comparison

Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI. Uses Nebraska's 1.73% property tax rate.

Lincoln
Home Price$265,000
Down Payment (10%)$26,500
Loan Amount$238,500
Monthly P&I$1,507
Monthly Property Tax$382
Monthly Insurance$233
Monthly PMI$99
Total PITI$2,222/mo
Annual property tax: $4,585
Omaha
Home Price$275,000
Down Payment (10%)$27,500
Loan Amount$247,500
Monthly P&I$1,564
Monthly Property Tax$396
Monthly Insurance$233
Monthly PMI$103
Total PITI$2,297/mo
Annual property tax: $4,758

Buying in Lincoln saves you approximately $75/month ($900/year) compared to Omaha, based on median home prices with identical loan terms.

Which City Is Better For...

First-Time Buyers

Lincoln is the better choice for first-time buyers, with a median price of $265K versus $275K in Omaha. That's $10K less to save for a down payment. You'd need roughly $9K for an FHA 3.5% down payment in Lincoln, compared to $10K in Omaha. Nebraska offers the NIFA Homebuyer Assistance program (Up to 5% DPA) which applies in both cities.

Real Estate Investment

Omaha has the better price-to-rent ratio at 19.4x versus 19.7x in Lincoln. A lower ratio generally signals better rental income relative to purchase price. Average rent in Omaha is $1,180/month on a $275K median home, making it a stronger candidate for buy-and-rent investors.

Families

Omaha (pop. 486,051) offers more amenities, schools, and services typical of a larger city, while Lincoln (pop. 291,082) may offer a quieter, more community-oriented lifestyle. Families on a budget may prefer Lincoln, where lower housing costs free up more income for childcare, education, and savings.

Income Needed to Afford the Median Home

Lincoln
$95K
annual household income
Based on $2,222/mo PITI at 28% DTI
Omaha
$98K
annual household income
Based on $2,297/mo PITI at 28% DTI

Other Cities in Nebraska

Bellevue$285K
Pop. 64,176 · Rent $1,220/mo
Grand Island$195K
Pop. 53,131 · Rent $920/mo
Kearney$235K
Pop. 33,790 · Rent $1,020/mo
Fremont$205K
Pop. 26,397 · Rent $920/mo
Hastings$185K
Pop. 25,216 · Rent $850/mo
Norfolk$195K
Pop. 24,523 · Rent $880/mo
North Platte$195K
Pop. 23,880 · Rent $850/mo
Papillion$315K
Pop. 24,310 · Rent $1,280/mo

Explore Nebraska

Nebraska Mortgage Guide$245K median →
1.73% tax · $3K closing · $2,800/yr insurance
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