Location: Nye County, NV | Metro: Nye County, NV
| Unit Size | Monthly FMR |
|---|---|
| Studio | $860 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,560 |
| 4 Bedrooms | $1,890 |
| 5 Bedrooms | $2,192 |
| 6 Bedrooms | $2,455 |
| 7 Bedrooms | $2,651 |
| 8 Bedrooms | $2,784 |
The ZIP code 89022, located in Manhattan, Nevada, presents a unique set of challenges and opportunities for landlords and small-portfolio investors. Let's address the key concerns.
Objection 1: Will Fair Market Rent (FMR) of $1,160 cover the mortgage on a typical home in this area?
To evaluate this, we must consider the average home price. A recent listing in the area is priced at $210,000. Assuming a 30-year fixed-rate mortgage at an average interest rate of 4%, the monthly payment would be approximately $1,000. Therefore, the FMR of $1,160 should comfortably cover the mortgage, leaving room for maintenance and other expenses.
Objection 2: Is there sufficient renter demand at this rental rate?
Data from the neighborhood suggests that the majority of homes are single-detached and mobile units, which typically attract renters looking for affordable housing. The median household income in the area is relatively low, indicating that a significant portion of potential tenants would be sensitive to rental rates. However, the FMR of $1,160 aligns well with the affordability expectations of the local population, suggesting a reasonable level of demand.
Objection 3: Will Housing Choice Vouchers keep pace with the market rents in ZIP 89022?
This is a critical concern given the low-income nature of the area. While the voucher program aims to cover a substantial portion of the FMR, the exact amount can vary based on local conditions and federal funding. Investors should monitor the local HUD website for updates on voucher amounts and availability to ensure they remain competitive with market rents. Current data does not provide specific figures on voucher amounts for ZIP 89022, so caution is advised when relying solely on vouchers to cover rent.
In conclusion, while there are valid concerns regarding the sustainability of rental income in ZIP 89022, the FMR of $1,160 appears to be adequate for covering mortgage payments and maintaining a property. However, the reliance on Housing Choice Vouchers requires careful monitoring to ensure they keep pace with market rents.
Data Sources: FMR data from HUD (2027).
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.