Location: Sherman County, NE | Metro: Howard County, NE HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $730 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,610 |
| 5 Bedrooms | $1,868 |
| 6 Bedrooms | $2,092 |
| 7 Bedrooms | $2,259 |
| 8 Bedrooms | $2,372 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 68817 are straightforward. The SAFMR (Standard Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code is set at $870 per month for fiscal year 2024. In comparison, the local market rent for a similar unit, based on Census ACS data, averages around $842.
A landlord participating in the Section 8 program receives payments from the Housing Choice Voucher Program. This payment is calculated to cover the difference between the market rent and 30% of the tenant's income, plus any applicable utility allowances. For ZIP 68817, the voucher payment will not exceed the SAFMR of $870.
To illustrate, let's assume a tenant's monthly income is $1,500. Thirty percent of their income would be $450, which they are required to pay towards rent. If the local market rent for a two-bedroom apartment is $842, the government would subsidize the remaining amount up to the SAFMR cap. Therefore, the government would pay $390 ($842 - $450).
If the market rent were higher, say $900, the government would still only pay up to the SAFMR cap of $870. In this case, the government would pay $420 ($870 - $450), leaving the landlord to either reduce the rent to match the SAFMR or accept a lower overall rental income.
Utility allowances are also factored into the reimbursement calculation but do not increase the total SAFMR. These allowances vary by region and household size. For ZIP 68817, the utility allowance for a two-person household would be approximately $150-$200 per month, depending on the specifics of the housing authority's policy.
In ZIP 68817, landlords can expect a slight surplus when renting a two-bedroom apartment at the average local market rate. With an average market rent of $842 and an SAFMR of $870, landlords will receive a full reimbursement without having to absorb any costs. However, if the market rent exceeds the SAFMR, landlords will face a reimbursement gap, meaning they must either lower the rent or accept a reduced income for the unit.
Overall, the typical reimbursement for a two-bedroom apartment in ZIP 68817 is slightly above the local market rent, providing a modest surplus for landlords who rent at the average price. This surplus can range from $28 to $70 per month, depending on the exact market rent charged and the utility allowance provided.
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.