Section 8 Fair Market Rent (FMR) for ZIP 89032 - 2027

Investment Score for ZIP 89032

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	$1,400
1 Bedroom	$1,530
2 Bedrooms	$1,800
3 Bedrooms	$2,470
4 Bedrooms	$2,830
5 Bedrooms	$3,283
6 Bedrooms	$3,677
7 Bedrooms	$3,971
8 Bedrooms	$4,170

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	$1,800	$251,191	0.72%	D
3BR	$2,470	$377,115	0.65%	D
4BR	$2,830	$417,204	0.68%	D
5BR	$3,283	$487,248	0.67%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 89032 (North Las Vegas, NV) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 89032, as per the 2026 estimates, is set at $1830 for a two-bedroom unit. This represents 28.8% of the median household income of $76,127. However, the actual rental market price for a two-bedroom unit, according to Zillow, is $257,515. The price-to-FMR ratio for a two-bedroom unit is 11.7x, indicating that the actual market rent is significantly higher than the FMR. This discrepancy creates several constraints for voucher holders. Firstly, the limited budget of $1830 may not cover the cost of renting a typical two-bedroom apartment in North Las Vegas, making it difficult for voucher recipients to find suitable housing. Secondly, landlords may be less inclined to accept Section 8 vouchers due to the lower rent compared to market rates, leading to a potential shortage of available units for voucher holders. #### Affordability & Renter Profile ZIP code 89032 has a population of 49,473, with 37.8% of residents being renters. The occupancy rate stands at 93.5%, suggesting a relatively tight market where most available units are occupied. Given the median household income of $76,127, the FMR of $1830 for a two-bedroom unit seems reasonable, as it is only 28.8% of the median income. However, the actual market rent of $257,515 is much higher, which could pose affordability challenges for many residents. The high occupancy rate and significant portion of renters indicate that there is strong demand for rental properties in this area. This suggests that the market is likely to remain competitive, with landlords having the upper hand in terms of pricing and selection criteria. For those relying on Section 8 vouchers, finding affordable housing can be particularly challenging given the disparity between FMR and actual market rents. #### Investor Angle From an investor perspective, the ZIP code 89032 offers both opportunities and challenges. The FMR for a two-bedroom unit is $1830, but the actual market rent is $257,515. This means that if an investor were to purchase a property at the median price and rent it out at the FMR, they would likely face negative cash flow. To illustrate, a property priced at $257,515 would generate monthly rental income of $1830, while the associated costs (mortgage, maintenance, utilities, etc.) would likely exceed this amount. However, there is still potential for positive cash flow if investors can secure properties below the median price or negotiate higher rents with non-voucher tenants. The high occupancy rate and significant renter population suggest that demand for rental properties is robust, which could support higher rental prices and potentially better returns on investment. #### Specific Actionable Insights 1. **Focus on Lower-Rent Properties**: Investors should consider focusing on one-bedroom or studio units, which have lower FMRs ($1560 and $1410 respectively). These units are more likely to align with the FMR and provide better cash flow opportunities when rented to Section 8 voucher holders. 2. **Negotiate with Landlords**: Given the high occupancy rate, there may be opportunities to negotiate with existing landlords who are currently renting at market rates. By offering to take over their lease agreements at FMR levels, investors can potentially secure properties at a lower price point, improving their chances of achieving positive cash flow. 3. **Consider Multi-Family Units**: Since the FMR for three-bedroom units is $2550 and four-bedroom units is $2920, investing in multi-family units could be more profitable. These larger units often command higher rents and can accommodate families with multiple members, increasing the likelihood of securing tenants willing to pay closer to the FMR. #### Bottom Line Given the significant gap between the FMR and actual market rents, the recommendation for Section 8-focused investors in ZIP code 89032 is to **Skip** purchasing properties at the median price. Instead, investors should focus on securing properties at a lower price point or in smaller units where the FMR is more aligned with market rents. This approach will help ensure positive cash flow and a more viable investment strategy in this competitive 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.