Location: Gage County, NE | Metro: Gage County, NE
| Unit Size | Monthly FMR |
|---|---|
| Studio | $960 |
| 1 Bedroom | $1,050 |
| 2 Bedrooms | $1,380 |
| 3 Bedrooms | $1,640 |
| 4 Bedrooms | $2,160 |
| 5 Bedrooms | $2,506 |
| 6 Bedrooms | $2,807 |
| 7 Bedrooms | $3,032 |
| 8 Bedrooms | $3,184 |
U.S. Census Bureau data (2024)
In ZIP code 68318, the economics of Section 8 housing can be clearly outlined using the SAFMR (Small Area Fair Market Rent) data and local market rent figures. For a two-bedroom apartment in this ZIP code, the SAFMR for FY 2026 is set at $960. This figure represents the maximum amount that the Housing Choice Voucher Program will pay for rent in this specific area. The local market rent, as reported by the Census ACS, is higher at $1,109 per month.
A landlord participating in Section 8 should understand that the reimbursement comes from two primary sources: the voucher payment and the tenant's contribution. The tenant is responsible for paying 30% of their adjusted income towards rent and utilities. Assuming an average adjusted income of $1,500 (a common benchmark), the tenant would contribute $450 towards the total rent and utility costs.
The voucher itself covers the remaining portion of the rent, up to the SAFMR limit. In ZIP 68318, if the landlord charges $960 or less, the voucher will cover the difference between the tenant's contribution and the rent. However, if the landlord sets the rent above the SAFMR, the voucher will only pay up to $960, leaving the landlord to either absorb the loss or seek additional rent from the tenant, which is typically not allowed under Section 8 rules.
To illustrate, let’s assume a two-bedroom rental unit is priced at $960. The voucher would cover the difference between the $450 tenant contribution and the $960 rent, meaning the voucher would pay $510. If the unit is priced at $1,109, the voucher would still only pay $510, leaving a gap of $599 that the landlord would need to address. In this scenario, landlords must decide whether to accept the lower reimbursement or find alternative solutions to bridge the gap.
Utility allowances are also part of the reimbursement structure but are not guaranteed to fully cover all utility expenses. Landlords must consider these factors when deciding on participation in the Section 8 program. Given the local market rent of $1,109 and the SAFMR of $960, landlords in ZIP 68318 will typically face a reimbursement gap of $149 per month for a two-bedroom unit, assuming they charge the market rate and the tenant contributes the standard 30% of their adjusted income.
This gap means landlords must weigh the benefits of stable, government-backed rental income against the financial shortfall compared to market rates. Participation in Section 8 can provide a steady stream of tenants and reduce vacancy rates, but it does come with a trade-off in terms of rental revenue.
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.