Location: Sherman County, NE | Metro: Buffalo County, NE
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,680 |
| 5 Bedrooms | $1,949 |
| 6 Bedrooms | $2,183 |
| 7 Bedrooms | $2,358 |
| 8 Bedrooms | $2,476 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 68844 are straightforward. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) is set at $960 per month for the fiscal year 2026. This figure represents the maximum amount that the housing authority will pay on behalf of a tenant. However, it's important to note that local market rents are currently unavailable, which makes it difficult to compare the SAFMR to the actual rental rates in the area.
A Section 8 voucher does not cover the entire rent. Instead, it reimburses the landlord for the difference between the tenant's contribution and the SAFMR. The tenant typically pays 30% of their adjusted income towards rent, plus any applicable utility allowances. If the tenant's portion of the rent is less than the SAFMR, the housing authority covers the remainder.
To illustrate, let's assume a tenant has an adjusted income of $1,500 per month. Their contribution would be 30%, or $450. If the utility allowance is $100, then the total monthly contribution from the tenant would be $550. Given the SAFMR of $960, the housing authority would pay the remaining $410 to meet the total rent.
In ZIP 68844, landlords can expect the typical reimbursement for a two-bedroom apartment to be lower than the SAFMR if the market rent is below $960. Conversely, if the market rent exceeds $960, landlords will face a reimbursement gap. Without specific market rent data, we cannot determine the exact surplus or shortfall, but it is clear that landlords should aim to set their rents close to the SAFMR to maximize their income while still being competitive in the local rental market.
Given the SAFMR of $960, landlords should calculate their expected income based on the average tenant contribution and utility allowances. For instance, if the average tenant contribution remains around $450 and utility allowances are $100, the typical reimbursement would be $410, leading to a total monthly rent of $960. This scenario would result in neither a significant surplus nor a shortfall, assuming the local market rent aligns closely with the SAFMR.
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.