Location: Clay County, NE | Metro: Clay 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 | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $150,731 | 0.67% | D |
| 3BR | $1,210 | $215,705 | 0.56% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 68933, which covers Clay Center, NE, in Clay County, revolve around the balance between the SAFMR (Small Area Fair Market Rent) and the local market rent. For a two-bedroom apartment, the SAFMR for FY 2026 is set at $960. This figure is specific to this ZIP code and reflects the government's assessment of what constitutes fair market rent for subsidized housing units in this particular area.
In contrast, the local market rent for a two-bedroom unit, as per the Census ACS, stands at $625. This lower figure represents the average rent that tenants in Clay Center are willing to pay out-of-pocket for similar units without any subsidy.
A landlord participating in the Section 8 program will receive a combination of payments: the tenant's portion of the rent plus an additional utility allowance. The tenant is responsible for paying 30% of their adjusted income towards rent. If we assume an average adjusted income of $1,000 for a tenant in this area, their monthly contribution would be $300. The remaining amount up to the SAFMR is covered by the housing authority, but it cannot exceed the $960 SAFMR cap.
In addition to the rent payment, there is also a utility allowance. For ZIP 68933, the utility allowance for a two-bedroom unit is typically around $300. This allowance is meant to cover electricity, gas, water, and sewer costs. It is important to note that the utility allowance is fixed and does not vary based on actual usage.
To illustrate, if a tenant's portion is $300 and the utility allowance is $300, the total reimbursement from the housing authority would be $600 ($300 tenant contribution + $300 utility allowance). Therefore, the landlord would receive $600 per month, leaving a gap of $360 ($960 SAFMR - $600 received).
This gap is the difference between the SAFMR and the total amount reimbursed by the housing authority. In this case, landlords will have to accept a reimbursement rate that is significantly lower than the SAFMR, resulting in a net loss of $360 per month compared to the SAFMR benchmark. However, this scenario assumes the SAFMR is higher than the local market rent; if the local market rent were higher than the SAFMR, landlords could potentially see a surplus.
Given the local market rent is $625, landlords can expect a surplus of $275 ($600 received from the housing authority + $300 tenant contribution - $625 local market rent) when factoring in the tenant's contribution and utility allowance. This surplus indicates that even though the government sets the SAFMR at $960, landlords can still benefit financially by participating in the Section 8 program, especially if they manage to keep operating costs below the local market rent levels.
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.