Location: Valley County, NE | Metro: Garfield County, NE
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 | $730 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $122,798 | 0.82% | C |
| 3BR | $1,210 | $195,934 | 0.62% | D |
| 4BR | $1,700 | $243,468 | 0.7% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP 68862, which covers Ord, Nebraska in Valley County, operate based on the SAFMR (Small Area Fair Market Rent) set for this specific ZIP code. For a two-bedroom apartment, the SAFMR for FY 2026 is $960. However, the local market rent, according to Census ACS data, is lower at $623.
A landlord participating in the Section 8 program receives payment from the Housing Choice Voucher (HCV) program for the portion of rent that exceeds what the tenant can afford. The tenant's portion is generally 30% of their adjusted income, while the remaining amount is subsidized by the government. This subsidy is capped at the SAFMR level, meaning that the maximum reimbursement for a two-bedroom unit in this ZIP code cannot exceed $960.
To illustrate how this works, let's assume a tenant's monthly income is $1,500. Thirty percent of this income would be $450, which is the maximum amount the tenant would pay toward rent. If the landlord charges $623, the HCV program would cover the difference between the tenant's contribution and the rental charge, up to the SAFMR cap of $960. In this scenario, the program would reimburse the landlord $173 ($623 - $450).
Utility allowances also factor into the total reimbursement. These allowances vary but typically add around $200 to $300 to the base rent amount. Therefore, if a landlord includes utilities in the rent, the HCV program may cover an additional amount beyond the $960 SAFMR, depending on the utility allowance.
In ZIP 68862, landlords should expect a reimbursement gap since the local market rent is below the SAFMR. For a two-bedroom unit priced at $623, the typical reimbursement gap would be the difference between the local market rent and the SAFMR. Given the SAFMR of $960 and the market rent of $623, there is no surplus; rather, the landlord would receive the full market rent plus any applicable utility allowances.
This analysis shows that landlords in ZIP 68862 can rely on receiving the full market rent for a two-bedroom unit when using a Section 8 voucher, with no need to adjust their rates down to match the lower market rent. The utility allowances can further enhance the overall compensation, ensuring steady and predictable income.
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.