Location: Red Willow County, NE | Metro: Frontier 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 | $1,220 |
| 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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $122,294 | 0.83% | C |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 69034, which covers Indianola, NE, and parts of Red Willow County, can be quite straightforward when you understand the key components involved. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2026 is set at $960. This figure represents the maximum amount that the federal government will pay towards rental assistance for a unit of this size in this specific area.
However, it's important to note that the local market rent for a two-bedroom apartment in ZIP 69034 is typically around $710, based on recent Census ACS data. This lower market rent can affect how much landlords might actually receive from a Section 8 voucher.
A Section 8 voucher works by covering the difference between the tenant’s contribution and the SAFMR. Here’s how it breaks down:
In ZIP 69034, given the SAFMR of $960 and a local market rent of $710, landlords would typically see a surplus when renting to tenants with vouchers. The surplus comes from the fact that the government’s reimbursement is higher than the local market rent. Therefore, even if a landlord charges the market rate of $710, they would still receive the full SAFMR payment of $960, minus any utility allowances paid directly to the tenant.
To illustrate, if a tenant with an adjusted income of $1,500 moves into a two-bedroom apartment at the market rate of $710, the government would pay the difference between the tenant’s $450 contribution and the SAFMR of $960, which is $510. This results in the landlord receiving $960 ($450 from the tenant and $510 from the government), a surplus of $250 compared to the local market rent.
This surplus provides landlords with a financial advantage over market rates, making Section 8 vouchers a favorable option in ZIP 69034. However, landlords must ensure that the rental unit meets all the necessary standards and regulations set by the Housing Choice Voucher program to maintain eligibility for these payments.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.