Location: Lincoln, NE | Metro: Lincoln, NE HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,070 |
| 1 Bedroom | $1,140 |
| 2 Bedrooms | $1,390 |
| 3 Bedrooms | $1,920 |
| 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)
The economics of Section 8 in ZIP code 68522, located in Lincoln, Nebraska, Lancaster County, are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for fiscal year 2024 is set at $1230. This figure represents the maximum amount that HUD (Department of Housing and Urban Development) will pay landlords participating in the Section 8 program.
However, it's important to note that the local market rent for a similar two-bedroom unit, as indicated by ZORI (Zillow Observed Rent Index), stands at $1175. This means that the SAFMR exceeds the average market rent in the area by $55. For landlords, this can be seen as an opportunity to receive slightly above-market rates if they choose to participate in the program.
A Section 8 voucher does not cover the entire rent; the tenant is responsible for paying a portion of the rent, typically around 30% of their adjusted income. In ZIP 68522, assuming an average adjusted income of $20,000 per year, the tenant would contribute approximately $500 towards the monthly rent. Therefore, the total reimbursement to the landlord would be the lesser of the SAFMR ($1230) or the actual market rent ($1175), plus any applicable utility allowances.
If the landlord charges the market rent of $1175, the reimbursement would be $1175 minus the tenant's contribution of $500, leaving the landlord with $675 from the voucher program. If the landlord charges the SAFMR of $1230, the reimbursement would still be capped at $1175 due to the market conditions, resulting in a reimbursement of $675 plus the utility allowance. Utility allowances vary but are generally modest, adding a few dollars to the reimbursement.
In ZIP 68522, the typical reimbursement gap or surplus for a two-bedroom unit is a surplus of $55. This means that landlords who participate in the Section 8 program for a two-bedroom apartment can expect to receive a payment that is $55 higher than the average market rent, providing a slight financial advantage over renting to non-voucher tenants.
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.