Location: Las Vegas-Henderson-North Las Vegas, NV | Metro: Las Vegas-Henderson-North Las Vegas, NV MSA
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 | $1,590 |
| 1 Bedroom | $1,740 |
| 2 Bedrooms | $2,050 |
| 3 Bedrooms | $2,820 |
| 4 Bedrooms | $3,220 |
| 5 Bedrooms | $3,735 |
| 6 Bedrooms | $4,183 |
| 7 Bedrooms | $4,518 |
| 8 Bedrooms | $4,744 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,050 | $425,615 | 0.48% | F |
| 3BR | $2,820 | $570,560 | 0.49% | F |
U.S. Census Bureau data (2024)
In ZIP code 89034, located in Mesquite, NV, the financial landscape for Section 8 properties can be analyzed using the Fair Market Rent (FMR) and market rent figures provided. The annualized 2BR FMR for FY 2024 is $1640, while the market rent stands at $1934 according to the Census ACS data. To derive the cap rate picture, we need to calculate the gross yield for both scenarios against the median home value of $456,008.
The implied gross yield based on the Section 8 FMR is calculated as follows:
Given the 2.4% renter density and the lack of available days on market (DOM) data, it's important to consider the practical implications of these gross yields. The higher gross yield from market rent indicates a better return on investment compared to the lower yield from Section 8 FMR. However, the reality of the situation must also account for the lower renter density, suggesting that there might be fewer potential tenants who qualify for Section 8 subsidies in the area.
Despite the slightly higher gross yield from market rent, the stability and reliability of Section 8 rents cannot be overlooked. Section 8 provides a guaranteed income stream, which can be particularly valuable in an area with low renter density where finding qualified tenants could be challenging. Landlords and small-portfolio investors should weigh the benefits of steady, government-backed rental income against the slightly higher yields from market rents.
It's crucial to note that the gross yield comparison does not include operating expenses, which would be necessary to determine the actual net operating income (NOI) and cap rate. However, the stark difference in gross yields between the two scenarios offers a clear starting point for further analysis.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.