Location: Sioux County, NE | Metro: Scotts Bluff 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 | $810 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,470 |
| 4 Bedrooms | $1,650 |
| 5 Bedrooms | $1,914 |
| 6 Bedrooms | $2,144 |
| 7 Bedrooms | $2,316 |
| 8 Bedrooms | $2,432 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,160 | $165,616 | 0.7% | D |
| 3BR | $1,470 | $234,750 | 0.63% | D |
| 4BR | $1,650 | $267,253 | 0.62% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 69357, located in Mitchell, NE, within Scotts Bluff County, can be quite straightforward once you understand how the system works. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for fiscal year 2026 is set at $1,080. This is the maximum amount that the Section 8 program will pay towards the rent of a two-bedroom unit in this area.
However, the local market rent for a two-bedroom apartment in ZIP 69357 is slightly lower at $1,042, according to the latest Census ACS data. This means that landlords participating in the Section 8 program in this ZIP code can expect to receive an amount close to the local market rent for their units.
A Section 8 voucher covers a significant portion of the rent, but tenants are also required to contribute a share based on their income. Typically, the tenant's contribution is 30% of their adjusted monthly income. For example, if a tenant has an adjusted monthly income of $1,000, they would need to pay $300 towards the rent of a two-bedroom apartment.
In addition to covering the rent, the Section 8 program also provides utility allowances. These allowances vary depending on the region and the size of the apartment. In ZIP 69357, the utility allowance for a two-bedroom apartment is included in the overall reimbursement package.
To calculate the actual reimbursement a landlord receives, subtract the tenant's contribution from the SAFMR. If the local market rent is less than the SAFMR, the landlord will still receive the market rent amount. For instance, with a tenant paying $300, the government would cover the remaining balance up to $1,080, ensuring the landlord receives the full market rent of $1,042.
Given these specifics, landlords in ZIP 69357 can expect a reimbursement gap or surplus. Since the SAFMR is higher than the local market rent, there is typically a surplus when the voucher amount exceeds the local rent. However, the exact surplus depends on the individual tenant's contribution. In this scenario, the landlord would have a surplus of $38 per month, assuming the tenant pays the standard 30% of their income.
This surplus is beneficial for landlords as it can help offset any administrative costs associated with participating in the Section 8 program. It also ensures that landlords are paid an amount that reflects the local market conditions, even if the tenant's contribution is relatively low due to their income level.
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.