Section 8 Fair Market Rent (FMR) for ZIP 89101 - 2027

Investment Score for ZIP 89101

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	$1,200
1 Bedroom	$1,340
2 Bedrooms	$1,570
3 Bedrooms	$2,180
4 Bedrooms	$2,490
5 Bedrooms	$2,888
6 Bedrooms	$3,235
7 Bedrooms	$3,494
8 Bedrooms	$3,669

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	$1,340	$309,133	0.43%	F
2BR	$1,570	$275,586	0.57%	F
3BR	$2,180	$307,968	0.71%	D
4BR	$2,490	$338,718	0.74%	D
5BR	$2,888	$374,058	0.77%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 89101 (Las Vegas, NV) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 89101 is set by HUD to ensure that low-income families have access to affordable housing. For 2026, the FMRs are as follows: - 0BR: $1190 - 1BR: $1330 - 2BR: $1580 (which is 48.0% of the median household income) - 3BR: $2210 - 4BR: $2560 To understand how these FMRs compare to actual rents, we can look at the Zillow median price for a 2BR property, which stands at $280,806. This suggests that the average cost of purchasing a 2BR home is significantly higher than the rental costs covered by the vouchers. The price-to-FMR ratio for a 2BR unit is 14.8x, indicating that the purchase price is about 14.8 times the monthly rent covered by the voucher. This high ratio means that voucher holders face significant constraints when trying to find suitable housing. They are limited to units that do not exceed their FMR, which is far below the average market rent. In practice, landlords might be hesitant to accept vouchers due to the perceived administrative burden and the lower rent compared to market rates. #### Affordability & Renter Profile ZIP code 89101 has a population of 42,739, with 81.3% of residents being renters. This indicates a strong demand for rental properties, suggesting that the market is tight rather than oversupplied. The median household income is $39,459, which is relatively low compared to the national average, making it challenging for many residents to afford market-rate rents without assistance. Given that 2BR units are priced at $1580 per month under the FMR, and this amount represents 48.0% of the median household income, it is clear that the majority of residents would struggle to pay even the FMR without financial aid. The occupancy rate of 87.2% further supports the notion that there is a high demand for rental units, leaving little room for vacancy. #### Investor Angle From an investor's perspective, the key question is whether the ZIP code offers cash-flow positive opportunities at the FMR levels. Given the high price-to-FMR ratio of 14.8x for a 2BR unit, it is unlikely that investors would find the ZIP code cash-flow positive based on FMR alone. However, if investors can secure properties at or below the FMR, they could potentially achieve positive cash flow. The investment grade for this ZIP code would likely be considered moderate to low due to the high purchase prices relative to the FMR. Investors should carefully consider the potential risks and rewards associated with accepting Section 8 vouchers. While there is a strong demand for rental properties, the low FMRs may not cover the full cost of ownership, including mortgage payments, maintenance, and other expenses. #### Specific Actionable Insights 1. **Focus on Lower-Rent Units**: Given the high price-to-FMR ratio, investors should focus on acquiring properties that are 0BR, 1BR, or 2BR units, as these are more likely to align with the FMR and provide better cash flow. For example, a 2BR unit at $1580 per month is 48.0% of the median household income, making it a more affordable option for residents. 2. **Negotiate with Landlords**: Since the market is tight and there is a high demand for rental units, landlords who are willing to accept Section 8 vouchers may be able to negotiate higher rents within the FMR limits. For instance, a landlord could aim for the maximum allowable rent of $1580 for a 2BR unit, ensuring that they receive the highest possible payment while still remaining within the FMR guidelines. 3. **Consider Property Location and Condition**: Properties in prime locations or those that are well-maintained may command slightly higher rents within the FMR range. Investors should prioritize acquiring such properties to maximize their returns. Additionally, properties that require minimal repairs or upgrades will reduce upfront costs and improve overall profitability. #### Bottom Line Based on the provided data, the ZIP code 89101 presents a challenging environment for Section 8-focused investors. The high price-to-FMR ratio and the tight rental market suggest that achieving positive cash flow solely through FMR rents is difficult. Therefore, the recommendation for investors is to **Skip** this ZIP code unless they can secure properties at or below the FMR levels and are willing to manage the administrative complexities associated with Section 8 vouchers. In summary, while there is a significant demand for rental properties in ZIP code 89101, the high purchase prices and low FMRs make it less attractive for investors looking to generate positive cash flow.

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.