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 | $280,046 | 0.56% | F |
| 3BR | $2,180 | $328,761 | 0.66% | D |
| 4BR | $2,490 | $378,580 | 0.66% | D |
| 5BR | $2,888 | $557,799 | 0.52% | F |
U.S. Census Bureau data (2024)
If a landlord is considering purchasing a property in ZIP 89106 (Las Vegas, NV) for Section 8 purposes, they must evaluate several factors to determine if it's a viable investment. The first step is to assess whether the Fair Market Rent (FMR) of $1320 can cover the debt service on a property valued at $337,740.
Does FMR $1320 clear debt service on a $337,740 property?
No: A property priced at $337,740 would typically have a monthly mortgage payment significantly higher than the FMR of $1320. For example, with a 30-year fixed-rate mortgage at an interest rate of 4%, the monthly payment would be approximately $1600, which exceeds the FMR. This makes it challenging to cover debt service solely with Section 8 payments.
It Depends: If the landlord has equity or can secure a lower interest rate, the monthly mortgage payment might be closer to or slightly below the FMR. However, additional costs such as property taxes, insurance, and maintenance must also be considered. These costs typically add another $300-$500 per month, making it unlikely that FMR alone will cover all expenses.
Is market rent $1,668 (ZORI) above, at, or below FMR?
Above: The ZORI (Zillow Rent Index) of $1,668 is higher than the FMR of $1320. This indicates that the market rent is above the FMR, providing an opportunity to potentially earn more from market tenants than from Section 8.
Below: Not applicable in this case since the ZORI is above the FMR.
At: Not applicable in this case since the ZORI is above the FMR.
Are 68.8% renters + 42-day DOM enough demand?
Yes: With 68.8% of the population being renters, there is a substantial demand for rental properties. Additionally, a 42-day Days on Market (DOM) suggests that properties are rented relatively quickly, indicating a healthy rental market. These conditions support the idea that there is sufficient demand for both Section 8 and market-rate rentals.
No: Not applicable given the high percentage of renters and low DOM.
It Depends: While the percentage of renters is high, the landlord must consider the competition from other rental properties. A 42-day DOM is reasonable but not exceptionally low, so the landlord should investigate further to ensure that demand remains robust even when accounting for Section 8-specific requirements.
In conclusion, the decision to purchase a property in ZIP 89106 for Section 8 largely hinges on the ability to manage the financial gap between FMR and total debt service costs. The strong rental market and competitive ZORI suggest that landlords can diversify their tenant base to include market-rate renters, thereby mitigating some risks associated with relying solely on Section 8 funding.
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.