Location: Nemaha County, KS | Metro: Manhattan, KS HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $790 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $990 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
U.S. Census Bureau data (2024)
In ZIP code 66540, the Section 8 program operates under specific economic guidelines that directly impact landlords and small-portfolio investors. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2024 is set at $880. This figure is crucial because it represents the maximum amount that the housing authority will pay towards a tenant's rent subsidy in this particular area.
The local market rent for a two-bedroom unit, according to the Census ACS, is $1,063. This indicates that the average rent charged by landlords in ZIP 66540 exceeds the SAFMR by $183 per month. However, landlords participating in the Section 8 program can still receive compensation for the full market rent, subject to certain conditions.
A Section 8 voucher works by covering the difference between the market rent and the tenant's portion of the rent, which is typically 30% of their income. For instance, if a tenant's income is $2,000 per month, their portion would be $600 ($2,000 * 0.30). In this case, the housing authority would cover the remaining $483 to meet the market rent of $1,063.
Utility allowances also play a role in the total reimbursement. These allowances vary but generally cover a portion of the tenant's electricity, gas, water, and sewer costs. If the utility allowance is $100, then the housing authority would pay an additional $100 towards these expenses, bringing the total reimbursement closer to the actual cost of renting the property.
To summarize, when a landlord rents a two-bedroom apartment for $1,063 to a Section 8 participant, the housing authority will pay $880 towards the rent and possibly an extra $100 for utilities, totaling $980. The tenant is responsible for paying $600, which brings the landlord's total reimbursement to $1,580 ($980 + $600). Since the market rent is $1,063, the landlord would actually see a surplus of $517 per month.
This surplus is significant and can help offset any potential losses due to the administrative overhead of participating in the Section 8 program. It's important to note that while the SAFMR sets a cap on the housing authority's contribution, the combination of the tenant's payment and utility allowances can result in a net positive for landlords, even when the market rent exceeds the SAFMR.
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.