Location: Merrick County, NE | Metro: Hall County, 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 | $970 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,510 |
| 4 Bedrooms | $1,930 |
| 5 Bedrooms | $2,239 |
| 6 Bedrooms | $2,508 |
| 7 Bedrooms | $2,709 |
| 8 Bedrooms | $2,844 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $970 | $139,487 | 0.7% | D |
| 2BR | $1,210 | $186,799 | 0.65% | D |
| 3BR | $1,510 | $249,258 | 0.61% | D |
| 4BR | $1,930 | $292,523 | 0.66% | D |
| 5BR | $2,239 | $310,409 | 0.72% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 68801, located in Grand Island, Nebraska, within Hall County, are defined by the Specific Area Fair Market Rent (SAFMR) and the local market rental rates. For a two-bedroom apartment, the SAFMR for FY 2024 is set at $980 per month. This figure represents the maximum amount that the Housing Choice Voucher program will pay towards rent in this specific ZIP code.
In contrast, the local market rent for a similar unit, as indicated by the Zillow Observed Rent Index (ZORI), stands at $1,288 per month. This means that landlords can charge higher rents on the open market compared to what the Section 8 program covers. However, when dealing with Section 8 tenants, landlords must understand the structure of payments and how they factor into their overall income.
A Section 8 voucher is designed to cover the difference between what a low-income family can afford and the actual rent. The tenant's portion of the rent is typically 30% of their adjusted income, which must fall below a certain threshold to qualify for the program. If we assume an average adjusted income of $1,600 per month, the tenant would contribute around $480 towards the rent ($1,600 * 0.30).
The remaining amount is covered by the government voucher. In this case, for a two-bedroom unit with a SAFMR of $980, the government would reimburse the landlord up to $980 minus the tenant’s contribution of $480, resulting in a voucher payment of $500 per month. It's important to note that this calculation does not include utility allowances, which can vary based on the size of the unit and the local cost of utilities.
Utility allowances are additional funds provided to cover electricity, gas, water, and other household utilities. These allowances are not part of the rent but are paid directly to the tenant. For a two-bedroom unit in ZIP 68801, the utility allowance might be around $300 per month, depending on the specifics of the program and local utility costs.
This brings us to the total reimbursement that a landlord can expect from a Section 8 voucher. With the tenant contributing $480 and the voucher covering $500, the total monthly reimbursement would be $980. Since the local market rent is $1,288, there would be a shortfall of $308 per month for landlords who choose to participate in the Section 8 program for a two-bedroom unit in ZIP 68801.
In summary, while the SAFMR of $980 provides a clear benchmark for what the government will pay, landlords should be aware of the local market rent of $1,288 and the reimbursement gap of $308 per month for a two-bedroom unit. This gap reflects the economic reality landlords face when participating in the Section 8 program in this specific ZIP code.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.