Location: Custer County, NE | Metro: Custer County, NE
| Unit Size | Monthly FMR |
|---|---|
| Studio | $920 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,270 |
| 3 Bedrooms | $1,760 |
| 4 Bedrooms | $1,980 |
| 5 Bedrooms | $2,297 |
| 6 Bedrooms | $2,573 |
| 7 Bedrooms | $2,779 |
| 8 Bedrooms | $2,918 |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 68860 are defined by the SAFMR (Small Area Fair Market Rent) which is set specifically for this ZIP code. For a two-bedroom apartment in ZIP 68860, the SAFMR for fiscal year 2026 is $960. This figure represents the maximum amount that the Section 8 program will pay towards the rent for such an apartment. In contrast, the local market rent for a similar unit runs at $1,667 according to the latest Census ACS data.
A Section 8 voucher does not cover the entire rent; it pays the difference between the market rent and the SAFMR, after accounting for the tenant's portion of the rent. The tenant is required to contribute 30% of their adjusted income toward the rent. Additionally, there are utility allowances that vary based on the size of the unit and the region. For a two-bedroom apartment in ZIP 68860, the utility allowance is included in the SAFMR calculation.
To illustrate, let's assume a tenant has an adjusted income of $1,000 per month. Their contribution would be $300 (30% of $1,000). The total payment from the tenant plus the utility allowance is subtracted from the market rent. If the utility allowance is $200, the total tenant contribution including utilities is $500 ($300 rent + $200 utilities). Therefore, the voucher would pay the remaining $460 ($960 SAFMR - $500 tenant contribution).
In ZIP 68860, landlords face a significant reimbursement gap when renting to tenants with Section 8 vouchers. Given the local market rent of $1,667, the reimbursement gap is calculated as follows: $1,667 (market rent) - $960 (SAFMＲ) = $707. This means landlords receive $707 less than the market rent for a two-bedroom apartment when utilizing a Section 8 voucher.
Landlords must weigh this reimbursement gap against the benefits of having a steady, government-backed rental income. While the SAFMR is lower than the local market rent, it provides a predictable income stream that can be advantageous in managing a property portfolio. The key is understanding the financial implications and ensuring that the SAFMR covers the costs of maintaining the property and generating a profit.
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.