Section 8 Fair Market Rent (FMR) for ZIP 89074 - 2027

Investment Score for ZIP 89074

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	$1,570
1 Bedroom	$1,720
2 Bedrooms	$2,020
3 Bedrooms	$2,780
4 Bedrooms	$3,180
5 Bedrooms	$3,689
6 Bedrooms	$4,132
7 Bedrooms	$4,463
8 Bedrooms	$4,686

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
1BR	$1,720	$200,863	0.86%	C
2BR	$2,020	$294,861	0.69%	D
3BR	$2,780	$428,524	0.65%	D
4BR	$3,180	$549,330	0.58%	F
5BR	$3,689	$687,258	0.54%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 89074 (Henderson, NV) #### Section 8 Voucher Dynamics In ZIP code 89074, the Fair Market Rent (FMR) for a two-bedroom unit is set at $2,120 per month for 2026. This amount represents 29.1% of the median household income in the area, which stands at $87,407. However, it is important to note that the actual rents in the market can be significantly higher. For instance, the Zillow median price for a two-bedroom home in this ZIP is $302,991, which translates to a price-to-FMR ratio of 11.9 times. This suggests that the actual rental rates could be much higher than the FMR, potentially making it difficult for Section 8 voucher holders to find suitable housing. The FMR is designed to ensure that low-income households do not spend more than 30% of their income on rent, but the gap between FMR and actual rents indicates a significant challenge for voucher recipients. #### Affordability & Renter Profile The ZIP code has a population of 52,388, with 40.5% of residents being renters. This high percentage of renters underscores the importance of affordable housing options in the area. The occupancy rate of 93.3% further highlights that the market is relatively tight, with most units occupied. Given the median household income and the FMR figures, it is likely that many renters are middle-class families who may struggle to afford the higher actual rents. The affordability issue is compounded by the fact that the FMR for a three-bedroom unit is $2,950, which is still below the average market rent. This suggests that the market is oversupplied with units that are too expensive for many voucher holders, leading to a mismatch between demand and supply. #### Investor Angle From an investor perspective, the ZIP code presents both opportunities and challenges. The FMR for a two-bedroom unit is $2,120, which is well below the Zillow median price of $302,991. However, the actual rental rates in the market are likely to be higher due to the tight occupancy rate and the high proportion of renters. To determine if this ZIP is cash-flow positive at FMR, we need to consider the typical rental rates and the potential for vacancy. If the actual rental rates are indeed around the Zillow median, then properties rented at FMR would likely generate negative cash flow. The investment grade of the ZIP code depends on various factors, including the local economic conditions, job market stability, and the overall demand for rental properties. Given the high occupancy rate and the significant number of renters, there is a strong demand for housing. However, the challenge lies in finding units that are priced at or near the FMR. Investors looking to participate in the Section 8 market should focus on properties that can be rented out at or below the FMR, which might require some negotiation with landlords or finding units that are already priced lower due to age or condition. #### Specific Actionable Insights 1. **Focus on Lower Priced Units**: Investors should target properties that are currently renting for close to or below the FMR. For example, a two-bedroom unit renting for $2,120 or less would be ideal for Section 8 tenants. This might mean looking for older homes or apartments that are in need of renovation, as these are often priced lower than newer, more luxurious units. 2. **Negotiate with Landlords**: Given the high price-to-FMR ratio, negotiating with landlords to reduce rental rates to match the FMR could be a viable strategy. This would involve convincing landlords that renting at the FMR is more beneficial in the long run due to the stability and reliability of Section 8 tenants. For instance, a landlord might agree to rent a three-bedroom unit for $2,950 instead of the market rate, which could be significantly higher. 3. **Consider Multi-Family Properties**: Multi-family properties, such as apartment complexes, might offer better opportunities for Section 8-focused investments. These properties can be more easily managed and often have units available at a range of price points. Additionally, multi-family properties might be more willing to work with the FMR guidelines due to the larger scale of their operations. #### Bottom Line Based on the data provided, the ZIP code 89074 presents a challenging environment for Section 8-focused investors. The high price-to-FMR ratio and the tight occupancy rate suggest that finding units that are affordable for voucher holders will be difficult. Therefore, the recommendation for investors is to **Skip** this ZIP unless they can identify specific properties that are priced at or below the FMR. If investors decide to enter this market, they must be prepared to negotiate aggressively with landlords and focus on lower-priced units to ensure positive cash flow. Overall, the ZIP code is not recommended for Section 8-focused investments due to the significant gap between FMR and actual rental rates.

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.