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 | $1,200 |
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,570 | $264,412 | 0.59% | F |
| 3BR | $2,180 | $359,834 | 0.61% | D |
| 4BR | $2,490 | $385,032 | 0.65% | D |
| 5BR | $2,888 | $434,504 | 0.66% | D |
U.S. Census Bureau data (2024)
Skeptical investors looking at ZIP 89104 in Las Vegas, NV, might have several concerns regarding the viability of investing in properties eligible for Section 8 housing assistance. Let's address these objections head-on using the available data.
Will Fair Market Rent (FMR) of $1340 cover the mortgage on a $361,720 home?
The FMR of $1340 for ZIP 89104 in fiscal year 2024 is the maximum amount that the U.S. Department of Housing and Urban Development (HUD) will pay for a rental unit. To determine if this amount can cover the mortgage, we need to look at typical mortgage rates and terms. Assuming a 30-year fixed-rate mortgage at an average rate of 5%, the monthly payment on a $361,720 home would be approximately $1875. This means that the FMR alone does not fully cover the mortgage payment. However, it's important to note that landlords can charge tenants the difference between the FMR and the mortgage payment, which in this case would be around $535 per month. This additional income helps offset the mortgage cost, making the investment feasible despite the initial shortfall.
Is there enough renter demand at 57.8%?
The 57.8% occupancy rate indicates that just over half of the rental units in ZIP 89104 are occupied. This figure suggests a moderate level of demand, but it also implies potential competition among landlords. The key to success lies in understanding the local rental market dynamics and tailoring property offerings to meet the needs of renters. For instance, maintaining a high-quality property and offering amenities that appeal to tenants can help increase demand and occupancy rates. Furthermore, the demand for affordable housing in the area remains strong, especially given the city's growing population and economic activity.
Will vouchers keep pace with $1,256 market rents?
The average market rent of $1,256 in ZIP 89104 exceeds the FMR of $1340, but it's crucial to understand how voucher payments work. Vouchers typically cover the difference between what a tenant can afford and the actual market rent, up to the FMR limit. Therefore, landlords should expect that while vouchers will help subsidize rent, they may not cover the entire market rent amount. In this scenario, landlords must consider charging tenants the remaining balance above the FMR, which could be a significant portion of the total rent. This arrangement ensures that landlords receive the full market rent while still benefiting from the stability that Section 8 provides.
The data clearly shows that investing in ZIP 89104 requires careful consideration of both the financials and the local market conditions. While there are challenges, such as the gap between FMR and mortgage payments, the demand for affordable housing and the structure of voucher programs provide opportunities for landlords to succeed. It's essential to balance these factors and make informed decisions based on the specific details of each property and the broader market trends.
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.