Location: Gage County, NE | Metro: Lincoln, NE HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $900 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,610 |
| 4 Bedrooms | $1,840 |
| 5 Bedrooms | $2,134 |
| 6 Bedrooms | $2,390 |
| 7 Bedrooms | $2,581 |
| 8 Bedrooms | $2,710 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,180 | $295,955 | 0.4% | F |
| 3BR | $1,610 | $468,634 | 0.34% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 68358, located in Firth, Nebraska, within Lancaster County, are straightforward when analyzed. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for fiscal year 2024 is set at $940. This figure represents the maximum amount that the housing authority will pay towards the rent of a two-bedroom unit in this area.
In contrast, the local market rent for a similar two-bedroom apartment in ZIP 68358 is $1,072, according to the Census ACS data. This indicates that the market rent exceeds the SAFMR by $132 per month. Landlords need to understand that the Section 8 voucher program does not cover the entire market rent but rather a fixed amount based on the SAFMR.
A voucher holder is responsible for paying a portion of the rent themselves, typically 30% of their adjusted income. The remainder is covered by the government up to the SAFMR limit. Additionally, utility allowances are factored into the overall payment structure. These allowances vary but are designed to help cover the cost of utilities, which can add a few hundred dollars to the total monthly payment.
To illustrate, if a voucher holder's share is $300 and the utility allowance is $150, the total reimbursement a landlord would receive from the government and the tenant would be $940 (SAFMR) + $300 (tenant share) + $150 (utility allowance) = $1,390. However, this calculation assumes the tenant's share plus the utility allowance does not exceed the difference between the market rent and the SAFMR.
In reality, the reimbursement gap or surplus is calculated as follows: If the total reimbursement ($1,390) is less than the market rent ($1,072), there would be a surplus. But since the SAFMR is lower than the market rent, landlords should expect a reimbursement gap. In this case, the gap is $1,072 (market rent) - $940 (SAFMR) = $132.
This means that landlords must decide whether they want to accept a reimbursement that is $132 below the market rate for a two-bedroom unit or adjust their expectations accordingly. It's important to note that while the SAFMR is a fixed rate, the actual reimbursement can vary slightly based on the individual tenant's contribution and any adjustments made to utility allowances.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.