Location: Sheridan County, NE | Metro: Dawes 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 | $800 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $840 | $94,926 | 0.88% | C |
| 2BR | $1,100 | $152,607 | 0.72% | D |
| 3BR | $1,350 | $226,763 | 0.6% | F |
| 4BR | $1,520 | $267,443 | 0.57% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 69337, which covers Chadron, NE, in Dawes County, operate under specific parameters set by the federal government. For fiscal year 2026, the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code is $1,040. However, the local market rent for a similar unit is currently at $923, according to the latest Census ACS data.
A landlord participating in the Section 8 program should understand how the voucher system works in terms of payments. A tenant's portion of the rent is based on their income, typically around 30% of their monthly adjusted income. In addition to the tenant's contribution, there is an allowance for utilities, which can vary but generally ranges from $200 to $300 per month depending on the household size and local utility costs.
To illustrate, if a tenant's income is such that their contribution towards rent is $300, and the utility allowance is $250, the total payment from the voucher program would be $550. This amount is then added to the tenant’s contribution to cover the entire rent. Thus, the voucher would pay the landlord $550 plus the tenant’s $300, totaling $850.
This means that in ZIP 69337, where the SAFMR is set specifically for this area, landlords will receive less than the SAFMR rate. Given the local market rent of $923, there is a reimbursement gap when compared to the SAFMR. Landlords must decide whether to accept the lower payment from the voucher program or seek higher rents from non-voucher tenants.
In summary, the typical reimbursement gap for a two-bedroom apartment in ZIP 69337 under the Section 8 program is $190. This gap exists because the local market rent is below the SAFMR, leading to lower overall payments to landlords from the voucher program.
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.