Section 8 Fair Market Rent (FMR) for ZIP 89117 - 2027

Investment Score for ZIP 89117

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	$1,480
1 Bedroom	$1,620
2 Bedrooms	$1,900
3 Bedrooms	$2,610
4 Bedrooms	$2,990
5 Bedrooms	$3,468
6 Bedrooms	$3,884
7 Bedrooms	$4,195
8 Bedrooms	$4,405

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	$1,620	$170,322	0.95%	C
2BR	$1,900	$234,691	0.81%	C
3BR	$2,610	$453,887	0.58%	F
4BR	$2,990	$588,607	0.51%	F
5BR	$3,468	$860,568	0.4%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 89117 (Las Vegas, NV) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 89117 in Las Vegas, NV, is set by HUD for 2026. For a two-bedroom apartment, the FMR is $1,960. This amount represents 31.3% of the median household income in the area, which is $75,145. However, the actual median rent for a two-bedroom unit on Zillow is $2,425.40, indicating that the actual rental market price is significantly higher than the FMR. The price-to-FMR ratio is 10.3x, suggesting that the actual rents are more than ten times the FMR for a two-bedroom unit. This discrepancy creates significant constraints for voucher holders. They might find it challenging to secure housing within the FMR limits, especially given the high occupancy rate of 91.3%. With only 53.3% of households being renters, the competition for affordable units is intense. Voucher holders must navigate a market where landlords may prefer higher-paying tenants, leading to potential difficulties in finding suitable housing. #### Affordability & Renter Profile ZIP code 89117 has a population of 58,082, with 53.3% of households renting their homes. Given the median household income of $75,145, the affordability of housing is a critical issue. The median rent for a two-bedroom unit at $2,425.40 is nearly 32% of the median household income, making it a tight market for both renters and voucher holders. The occupancy rate of 91.3% suggests that there is little vacancy in the rental market, further tightening the supply. This high occupancy rate combined with the relatively low renter percentage indicates that there is a strong demand for rental properties, but the supply is limited. Consequently, renters face a competitive environment where they must often pay above the FMR to secure housing. #### Investor Angle From an investor perspective, the ZIP code 89117 presents a mixed picture. The FMR for a two-bedroom unit is $1,960, while the actual median rent is $2,425.40. This means that if an investor were to rely solely on FMR to set rental rates, they would likely be underpricing their units, potentially leading to lower cash flow. However, the actual rental market price is much higher, providing an opportunity for investors to achieve better returns. Despite the higher actual rental prices, the investment grade for this ZIP code is moderate due to the high occupancy rate and the tight market conditions. Investors should be cautious about relying too heavily on Section 8 vouchers because the actual rents are well above the FMR, and the competition for tenants could be fierce. Nonetheless, the strong demand for rental properties and the ability to charge higher rents make this ZIP code attractive for investors willing to manage the complexities of the rental market. #### Specific Actionable Insights 1. **Focus on Units Below FMR**: Investors should consider acquiring properties that can be rented below the FMR to attract Section 8 voucher holders. For instance, a one-bedroom unit priced at $1,670 or less would be more accessible to voucher holders, ensuring steady occupancy and potentially avoiding the need to compete with higher-priced units. 2. **Diversify Tenant Mix**: To mitigate the risk of relying solely on Section 8 vouchers, investors should diversify their tenant mix. Offering a range of units at different price points can help attract both voucher holders and other renters who can afford higher rents. This strategy can balance the cash flow and reduce dependency on a single type of tenant. 3. **Consider Renovation Costs**: Given the high price-to-FMR ratio, investors should evaluate the costs associated with renovating older properties to meet modern standards. If renovation costs can be managed effectively, the potential to command higher rents makes this ZIP code a viable investment option. However, the initial investment required should be carefully weighed against the expected returns. #### Bottom Line For Section 8-focused investors, ZIP code 89117 is a **Hold** recommendation. While there is strong demand for rental properties, the actual rents are substantially higher than the FMR, which can limit the attractiveness of the area for voucher holders. Investors should focus on units that can be rented below the FMR to ensure steady occupancy and consider diversifying their tenant mix to improve cash flow. Additionally, careful consideration of renovation costs and market dynamics is essential before making any investment decisions.

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.