Location: Lincoln County, NV | Metro: Lincoln County, NV
| Unit Size | Monthly FMR |
|---|---|
| Studio | $830 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,790 |
| 5 Bedrooms | $2,076 |
| 6 Bedrooms | $2,325 |
| 7 Bedrooms | $2,511 |
| 8 Bedrooms | $2,637 |
U.S. Census Bureau data (2024)
The analysis of Section 8 cap rates for ZIP code 89017 reveals some key insights for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a two-bedroom apartment in this area, annualized, stands at $1,100 for fiscal year 2026, based on metro-level data. However, the median home value is currently unavailable, as is the specific market rent figure for the area.
To derive the implied gross yield, we must consider the annual rental income relative to the property value. Given the FMR of $1,100 per month, the annual rental income would be $13,200. Without the median home value, we cannot calculate an exact gross yield, but it's important to note that the gross yield is the annual rental income divided by the property value. If we hypothetically assume a median home value, say $200,000, the gross yield would be 6.6%. This is a simplified calculation and does not account for vacancy rates, operating expenses, or other factors that affect net operating income (NOI).
In contrast, the market rent figure is also unavailable, which means we cannot provide a direct comparison to the FMR scenario. Typically, market rents tend to be higher than FMRs, which could potentially lead to a higher gross yield if the actual market rent were known. However, the lack of this data makes it impossible to draw a concrete conclusion about the gross yield under market conditions.
The data shows that the renter density in ZIP 89017 is 0.0%, indicating a very low proportion of residents who rely on rental assistance programs like Section 8. Additionally, the days on market (DOM) for rental properties is also not available, which further complicates the analysis. These factors suggest that the FMR-based gross yield of 6.6% might be overly optimistic given the low demand for subsidized housing in the area.
In summary, while the FMR provides a baseline for potential rental income, the lack of market rent and median home value data, combined with the extremely low renter density, makes it challenging to predict a realistic gross yield. Landlords and investors should consider these limitations when evaluating the potential returns from Section 8 properties in ZIP 89017.
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.