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 |
|---|---|---|---|---|
| 1BR | $1,340 | $150,516 | 0.89% | C |
| 2BR | $1,570 | $228,064 | 0.69% | D |
| 3BR | $2,180 | $345,918 | 0.63% | D |
| 4BR | $2,490 | $385,660 | 0.65% | D |
| 5BR | $2,888 | $447,656 | 0.65% | D |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 89107, located in Las Vegas, NV, reveals that the Fair Market Rent (FMR) set by the U.S. Department of Housing and Urban Development (HUD) for fiscal year 2024 is $1,460. This figure is slightly below the current market rent of $1,486, as measured by Zillow's Observed Rental Index (ZORI). Therefore, landlords participating in the Section 8 program can expect to cashflow marginally at the HUD FMR rate, given the slight disparity between the FMR and the actual market rent.
To further understand the investment dynamics, consider the median home value in ZIP 89107, which stands at $349,910. Using this figure, we can derive a rent-to-price ratio. For an average property valued at $349,910, the annual rent at the market rate would be approximately $17,832 ($1,486 per month), leading to a rent-to-price ratio of about 5.1%. This ratio suggests that rental income constitutes a significant portion of the property's value, making it a viable option for investors seeking steady cash flow.
The rental market in ZIP 89107 is also characterized by a quick turnover, with a median Days on Market (DOM) of 26 days and a low price-cut share of 0.2%. These metrics indicate a robust rental demand, where properties are rented quickly without needing to lower the asking price. Such conditions are favorable for landlords who want to minimize vacancy periods and avoid rent concessions.
In conclusion, the strongest investor angle in ZIP 89107 is likely to be cash flow. While voucher tenants may generate slightly less income than market-rate tenants, the close alignment of HUD FMR with market rents ensures that landlords can still achieve positive cash flow, particularly with well-maintained premium units. The strong rental demand and quick DOM times further support this angle, making it an attractive opportunity for those focused on generating regular rental income.
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.