Location: Lincoln County, NV | Metro: Lincoln County, NV
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 | $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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,070 | $143,358 | 0.75% | D |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 89043 in Nevada reveals some interesting insights when compared against the median home value of $238,744. For the first scenario, using the annualized Fair Market Rent (FMR) for a 2-bedroom unit at $1,100 per month (for FY 2026), the gross yield can be calculated. The annual rent collected would be $13,200. Dividing this by the median home value gives an implied gross yield of approximately 5.5%.
However, the second scenario presents a challenge due to the lack of available market rent data. Without this information, it's impossible to accurately calculate a gross yield based on market rents. This highlights a significant issue for potential investors looking to leverage Section 8 in ZIP 89043.
The gross yield of 5.5% derived from the FMR scenario is the only concrete figure we have. Given that the renter density in this area is reported as 0.0%, it suggests that there is either no significant rental market or that the data collection methods have not captured a substantial portion of renters. Additionally, the Day on Market (DOM) being listed as N/A indicates a lack of transactional activity, which further complicates the investment analysis.
In conclusion, while the implied gross yield of 5.5% from the FMR-based scenario provides a starting point for analysis, the absence of market rent data and the low renter density make it difficult to assess the true potential of Section 8 investments in ZIP 89043. Landlords and small-portfolio investors should proceed with caution and seek additional local market insights before making any investment decisions.
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.