Location: Lincoln, 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 | $1,130 |
| 1 Bedroom | $1,200 |
| 2 Bedrooms | $1,460 |
| 3 Bedrooms | $2,020 |
| 4 Bedrooms | $2,270 |
| 5 Bedrooms | $2,633 |
| 6 Bedrooms | $2,949 |
| 7 Bedrooms | $3,185 |
| 8 Bedrooms | $3,344 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,200 | $176,955 | 0.68% | D |
| 2BR | $1,460 | $228,070 | 0.64% | D |
| 3BR | $2,020 | $290,538 | 0.7% | D |
| 4BR | $2,270 | $360,171 | 0.63% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 68521, located in Lincoln, Nebraska, within Lancaster County, revolve around the SAFMR (Small Area Fair Market Rent) and the local market rent rates. For a two-bedroom apartment, the SAFMR for FY 2024 is set at $1120, which is specifically tailored for this ZIP code. This contrasts with the local market rent, measured by ZORI (Zillow Observed Rent Index), which stands at $1,513.
A landlord participating in the Section 8 program receives rental assistance payments from the government to cover the difference between the tenant's contribution and the actual rent. In ZIP 68521, the tenant is responsible for paying 30% of their income towards rent. If we assume an average income for the tenant, let's say $1,500 per month, then their portion would be $450. The remaining amount is subsidized by the government up to the SAFMR limit of $1120. Therefore, the voucher would pay $670 ($1120 - $450) to the landlord for a two-bedroom unit.
In addition to the base rent, the Section 8 program also provides utility allowances. These allowances vary but typically cover a portion of the tenant's electricity, gas, water, and sewer costs. Utility allowances can add up to an additional $200 to the total subsidy, bringing the government payment closer to the SAFMR cap.
To summarize, in ZIP 68521, a landlord would receive $670 from the voucher plus an estimated $200 in utility allowances, totaling $870. Given the local market rent of $1,513, this leaves a significant gap of $643 per month between the SAFMR reimbursement and the ZORI. Thus, landlords must weigh this substantial reimbursement gap against the benefits of stable tenancy and reduced vacancy risk when considering participation in the Section 8 program.
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.