Section 8 Fair Market Rent (FMR) for ZIP 89103 - 2027

Investment Score for ZIP 89103

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	$157,824	0.85%	C
2BR	$1,570	$207,095	0.76%	D
3BR	$2,180	$381,057	0.57%	F
4BR	$2,490	$453,857	0.55%	F
5BR	$2,888	$499,321	0.58%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 89103 (Las Vegas, NV) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 89103 in Las Vegas, NV, is set by HUD for 2026 as follows: - 0BR: $1240 - 1BR: $1380 - 2BR: $1620 (which is 39.8% of the median household income) - 3BR: $2250 - 4BR: $2580 To understand how these FMRs compare to actual rents, we must consider that the Zillow median price for a 2BR property in this ZIP code is $216,915. This translates to a price-to-FMR ratio of 11.2x, which means that the typical market rent for a 2BR unit is significantly higher than the FMR. For instance, if we assume a typical rental yield of 5%, the implied market rent would be approximately $10,845.75 annually, or about $903.81 monthly. However, this is a gross simplification, and actual market rents are likely much higher due to the high demand and limited supply. Given the FMRs, voucher holders face significant constraints. The maximum allowable rent for a 2BR unit under the voucher program is $1620, which is only 74.7% of the Zillow median price. This implies that many units in the market are out of reach for voucher holders unless landlords agree to accept lower rents, which is often not the case given the strong rental market dynamics. #### Affordability & Renter Profile ZIP code 89103 has a population of 49,041, with a median household income of $48,901. A notable 67.7% of residents are renters, indicating a robust rental market. The occupancy rate stands at 86.1%, suggesting that there is a relatively tight market with few vacant units available. With 67.7% of the population renting, the area is heavily reliant on affordable housing options. Given that the FMR for a 2BR unit is $1620, which represents 39.8% of the median household income, it is clear that the majority of residents can afford this level of rent. However, the disparity between FMR and market rent highlights the challenge faced by low-income families who rely on vouchers. The median household income is insufficient to cover the typical market rent without assistance, making the Section 8 program critical for maintaining affordability. #### Investor Angle From an investor perspective, the ZIP code 89103 presents a mixed picture. The FMRs are set to ensure that low-income families can find affordable housing, but they do not necessarily reflect the market rent levels. If an investor aims to focus solely on Section 8 tenants, the cash flow will be constrained by the FMR caps. For example, a 2BR unit can only command up to $1620 per month under the voucher program, while the market rent is likely much higher. However, if an investor is willing to accept a mix of Section 8 and market-rate tenants, the potential for cash flow improvement exists. The price-to-FMR ratio of 11.2x suggests that properties purchased at market rates would have to be rented well above the FMR to achieve positive cash flow. Therefore, the investment grade for Section 8-focused properties in this ZIP code is moderate to low, given the strict rent limitations imposed by the program. #### Specific Actionable Insights 1. **Target Mixed Tenancy Properties**: Investors should consider acquiring properties that can cater to both Section 8 and market-rate tenants. This strategy allows for leveraging the higher market rents where possible while still benefiting from the stability of Section 8 vouchers. For instance, a 3BR unit could be rented to a market-rate tenant at $1,800-$2,000 per month, while a 2BR unit could be rented to a Section 8 tenant at $1,620 per month. 2. **Focus on Lower-Rent Units**: Given the high price-to-FMR ratio, investors might want to concentrate on 0BR and 1BR units, which have FMRs of $1240 and $1380 respectively. These units are less likely to be out of reach for voucher holders compared to 2BR and larger units, and thus offer better opportunities for stable tenancy and cash flow. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 89103 is to **Hold**. While the area offers a strong rental market, the strict FMR limits make it challenging to achieve positive cash flow on properties purchased at market rates. Investors should carefully evaluate their portfolio mix and consider targeting smaller units or those that can accommodate a combination of Section 8 and market-rate tenants to optimize returns. In summary, the ZIP code 89103 is a dynamic rental market with high demand and limited supply, but the FMR constraints make it difficult for pure Section 8 investments to be financially viable. A balanced approach is recommended to navigate the challenges effectively.

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.