Location: Omaha-Council Bluffs, NE | Metro: Omaha-Council Bluffs, NE-IA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $850 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,580 |
| 5 Bedrooms | $1,833 |
| 6 Bedrooms | $2,053 |
| 7 Bedrooms | $2,217 |
| 8 Bedrooms | $2,328 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP 51555, located in Missouri Valley, IA, within Harrison County, revolve around the Specific Area Fair Market Rent (SAFMR) which is set for this specific ZIP code. For a two-bedroom apartment in FY 2024, the SAFMR is $980. However, the local market rent, based on Census ACS data, stands at $812. This discrepancy highlights the financial landscape landlords face when participating in the Section 8 program.
A landlord must understand that the voucher payment is not solely the SAFMR figure. It includes the tenant's portion of the rent and utility allowances. The tenant typically pays 30% of their adjusted income towards rent. If we assume an average adjusted income of $1,600 (which is a reasonable estimate given the SAFMR), the tenant would pay $480. This leaves the remaining $500 to be covered by the Section 8 voucher, bringing the total to $980.
Utility allowances can vary but generally add a fixed amount to the base rent. In ZIP 51555, let’s say the utility allowance averages around $200. Therefore, the actual reimbursement a landlord receives for a two-bedroom unit would be approximately $780 ($980 - $480 + $200).
To break it down further:
This calculation shows that the landlord would receive a total of $780 per month, which is less than the local market rent of $812. As such, there is a reimbursement gap of $42 per month. Landlords should factor this into their decision-making process regarding whether to accept Section 8 tenants in ZIP 51555.
In summary, while the SAFMR for a two-bedroom apartment in ZIP 51555 is $980, the actual reimbursement from a voucher will be lower due to the tenant's contribution and utility allowances. This results in a reimbursement gap of $42, indicating that landlords might earn slightly less than the local market rent if they choose to participate in the Section 8 program.
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.