Section 8 Fair Market Rent (FMR) for ZIP 89014 - 2027

Investment Score for ZIP 89014

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,470
1 Bedroom	$1,610
2 Bedrooms	$1,890
3 Bedrooms	$2,600
4 Bedrooms	$2,970
5 Bedrooms	$3,445
6 Bedrooms	$3,858
7 Bedrooms	$4,167
8 Bedrooms	$4,375

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,890	$236,096	0.8%	C
3BR	$2,600	$409,842	0.63%	D
4BR	$2,970	$503,231	0.59%	F
5BR	$3,445	$591,857	0.58%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 89014 (Henderson, NV) #### Section 8 Voucher Dynamics In ZIP code 89014, the Fair Market Rent (FMR) figures for 2026 are as follows: $1510 for 0BR units, $1680 for 1BR units, $1970 for 2BR units, $2740 for 3BR units, and $3140 for 4BR units. These FMRs represent the maximum amount that a Section 8 voucher holder can pay towards rent based on the size of their unit. However, it is crucial to understand how these FMRs compare to actual rental rates in the area. The actual rental rates for 2BR units, as per Zillow, are significantly higher at $241,409. This represents a price-to-FMR ratio of 10.2x, indicating that the actual market value of properties far exceeds the FMR. For instance, a 2BR unit priced at $241,409 would have a monthly mortgage payment (assuming a 30-year fixed-rate mortgage at 4.5%) of approximately $1170. When adding property taxes, insurance, and maintenance costs, the total monthly cost could easily exceed the FMR of $1970. This means that voucher holders face significant constraints in finding affordable housing. They must find landlords willing to accept the FMR, which is often below the market rate. The disparity between FMR and actual rental rates suggests that many voucher holders might struggle to secure housing that meets their needs without additional financial support. #### Affordability & Renter Profile ZIP code 89014 has a population of 42,439, with 47.2% of residents being renters. The median household income is $73,284, and 2BR units at FMR account for 32.3% of this income. This indicates that while the area is moderately affordable for those earning close to the median income, it remains challenging for lower-income households who rely heavily on Section 8 vouchers. Given the occupancy rate of 94.3%, the market appears to be relatively tight, with limited vacancies available. This tightness can drive up rental prices and make it even harder for voucher holders to find suitable housing. The high percentage of renters also suggests that there is a strong demand for rental properties, which can benefit investors but also increases competition among landlords. #### Investor Angle From an investor perspective, the ZIP code 89014 offers mixed opportunities. While the actual market value of properties is high, the FMRs set by HUD are much lower. A 2BR unit priced at $241,409 would need to generate a monthly rental income of around $1970 to align with FMR guidelines. However, the high price-to-FMR ratio of 10.2x implies that the actual rental market is not aligned with FMRs, making it difficult for investors to achieve positive cash flow solely based on FMRs. To determine if this ZIP code is cash-flow positive, we need to consider the total expenses associated with owning and renting out a property. Assuming a mortgage payment of $1170, property taxes of $200, insurance of $100, and maintenance costs of $100, the total monthly expenses would be approximately $1570. At an FMR of $1970, this would leave a small profit margin of $400 per month. However, given the high price-to-FMR ratio, it is likely that most properties will be rented above FMR, potentially leading to better cash flow. The investment grade for this ZIP code would be considered moderate due to the tight rental market and the high demand for rental properties. However, the challenge lies in finding tenants who can afford the rent based on FMR alone. Investors should be prepared to either accept lower rents or seek alternative financing options to ensure profitability. #### Specific Actionable Insights 1. **Target Lower-Income Housing:** Given the high percentage of renters and the tight market, investors should focus on acquiring properties that cater specifically to lower-income households. This includes units that are smaller in size (0BR, 1BR) and priced closer to FMR levels. For example, a 1BR unit at $1680 would be more attractive to voucher holders compared to a 2BR unit at $1970. 2. **Consider Rental Assistance Programs:** To improve cash flow and attract more tenants, investors might want to explore rental assistance programs beyond just Section 8. This could include local government subsidies, non-profit organizations, or other forms of financial aid that help bridge the gap between FMR and market rates. 3. **Enhance Property Management:** Effective property management strategies are essential in this market. This includes maintaining good relationships with tenants, ensuring timely repairs, and providing a clean and safe living environment. In a competitive market, these factors can make a significant difference in attracting and retaining tenants. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 89014 is to **Hold**. The area presents a challenging environment due to the high price-to-FMR ratio, but the strong demand for rental properties and the high percentage of renters suggest that there is potential for steady returns. Investors should carefully evaluate their acquisition strategy, focusing on properties that are more affordable and align closely with FMR guidelines. Additionally, they should consider supplementary rental assistance programs and implement robust property management practices to maximize their chances of success in this market.

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.