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 | $1,410 |
| 1 Bedroom | $1,550 |
| 2 Bedrooms | $1,820 |
| 3 Bedrooms | $2,500 |
| 4 Bedrooms | $2,860 |
| 5 Bedrooms | $3,318 |
| 6 Bedrooms | $3,716 |
| 7 Bedrooms | $4,013 |
| 8 Bedrooms | $4,214 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,500 | $373,683 | 0.67% | D |
| 4BR | $2,860 | $448,567 | 0.64% | D |
| 5BR | $3,318 | $504,101 | 0.66% | D |
U.S. Census Bureau data (2024)
The ZIP code 89086 presents several challenges for landlords considering participation in the Section 8 program. Firstly, tenant turnover is a significant concern. The market rent for the area is $1,582, while the Fair Market Rent (FMR) for fiscal year 2024 stands at $1,800. This discrepancy can lead to higher turnover rates as tenants seek to maximize their voucher benefits, resulting in frequent vacancies and increased management costs.
Vacancy exposure is another risk factor. With no data available on days on market (DOM), it's difficult to predict how quickly units might be filled once they become vacant. In areas with high competition for rentals, this could extend vacancy periods, leading to lost rental income and additional financial strain.
Deferred maintenance is also a potential issue. Given the typical home value of $415,130 and a median income of $79,222, many residents may struggle to afford necessary repairs and upgrades. This can result in properties deteriorating over time, requiring substantial investments from landlords to maintain quality standards and comply with housing regulations.
However, these risks must be weighed against the high renter share in the area, which stands at 45.1%. High renter density typically correlates with greater demand for rental properties, including those that accept Section 8 vouchers. This demand can help mitigate the risks associated with vacancy and turnover by ensuring a steady stream of interested tenants.
In conclusion, the verdict for ZIP 89086 is moderate risk. While there are notable challenges, particularly with tenant turnover and vacancy exposure, the strong rental market and high demand for Section 8 properties provide a counterbalance that makes the investment viable but requires careful management.
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.