Location: Cedar County, NE | Metro: Cedar County, NE
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,760 |
| 5 Bedrooms | $2,042 |
| 6 Bedrooms | $2,287 |
| 7 Bedrooms | $2,470 |
| 8 Bedrooms | $2,594 |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 68727 are straightforward. The SAFMR (Standard Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for fiscal year 2026 is set at $960. This figure represents the maximum amount that the government will pay towards rent for a two-bedroom unit in this area.
In contrast, the local market rent for a two-bedroom apartment in ZIP 68727, based on Census ACS data, is lower at $642. This discrepancy between the SAFMR and the actual market rent can be advantageous for landlords but also requires understanding of how the voucher system works.
A Section 8 voucher is designed to cover the difference between the market rent and what the tenant can afford to pay. The tenant's contribution is generally calculated as 30% of their adjusted monthly income. If the market rent is below the SAFMR, the voucher will cover the full market rent up to $960, provided it does not exceed the tenant’s portion plus the utility allowance.
To walk through an example, assume a tenant has an adjusted monthly income of $1,000. Their contribution towards rent would be 30%, or $300. If the local market rent is $642, the voucher would cover the remaining amount, which is $342, plus any utility allowances. Utility allowances are additional payments made directly to the landlord and vary depending on the household size and location. For a two-bedroom apartment, the utility allowance typically ranges from $100 to $200 per month.
This means that if a landlord sets the rent at the market rate of $642, they would receive the tenant's $300 contribution plus the voucher payment of $342, totaling $642. Including a utility allowance of $150, the total reimbursement would be $792.
If the landlord sets the rent at the SAFMR rate of $960, the voucher would still only cover up to $960 minus the tenant’s $300 contribution, which is $660. Adding the utility allowance of $150, the total reimbursement would be $810.
Given these numbers, setting the rent at the market rate of $642 would result in a surplus of $150 per month over the market rent when including the utility allowance. Setting the rent at the higher SAFMR rate of $960 would leave a gap of $150 per month that the landlord would have to absorb, unless the tenant’s income is high enough to cover the difference.
Therefore, landlords in ZIP 68727 should consider setting their rent closer to the market rate of $642 to ensure full reimbursement and avoid any financial shortfall. This strategy maximizes the landlord's income while staying within the parameters of the Section 8 program.
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.