Location: Phelps County, NE | Metro: Franklin County, NE
| Unit Size | Monthly FMR |
|---|---|
| Studio | $730 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,420 |
| 5 Bedrooms | $1,647 |
| 6 Bedrooms | $1,845 |
| 7 Bedrooms | $1,993 |
| 8 Bedrooms | $2,093 |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 68982 are defined by the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, which is set at $1,030 for the fiscal year 2026. This figure represents the maximum amount that the federal government will reimburse landlords participating in the Housing Choice Voucher program for this specific ZIP code. However, the local market rent for a similar unit is significantly lower, running at $671 according to the Census ACS data.
A landlord might wonder how much they would actually receive once the tenant's portion and utility allowances are factored into the equation. Here’s a breakdown:
In ZIP 68982, the reimbursement to landlords is based on the SAFMR of $1,030. If we assume an average utility allowance of $175, the total reimbursement would be the sum of the tenant’s contribution and the utility allowance. For instance, if the tenant contributes $300, the total reimbursement would be $475 ($300 + $175). Therefore, the landlord would receive $475 from the tenant and $555 from the government, totaling $1,030.
This setup can lead to a surplus or a gap depending on the actual market conditions and the landlord's rent expectations. Given that the market rent is $671, landlords would have a surplus when renting to a Section 8 tenant, receiving $1,030 versus the market rate of $671. This surplus amounts to $359 per month, making it financially beneficial for landlords to participate in the Section 8 program in ZIP 68982.
However, landlords must understand that the reimbursement is capped at $1,030, meaning even if they charge more than $671, they will only receive up to this SAFMR limit. It is crucial to adhere to the program rules to avoid penalties and ensure continued participation.
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.