Section 8 Fair Market Rent (FMR) for ZIP 89122 - 2027

Investment Score for ZIP 89122

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: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,340	$149,878	0.89%	C
2BR	$1,570	$260,010	0.6%	D
3BR	$2,180	$355,685	0.61%	D
4BR	$2,490	$384,993	0.65%	D
5BR	$2,888	$418,163	0.69%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 89122 (Las Vegas, NV) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 89122 is set by HUD for the year 2026. For a two-bedroom unit, the FMR is $1590 per month. This figure represents 29.9% of the median household income in the area, which stands at $63,846. However, the actual rental market is significantly higher. The Zillow median price for a two-bedroom property is $261,355, indicating that the average rent for such units would be much higher than the FMR. In fact, the price-to-FMR ratio is 13.7x, suggesting that landlords who want to maximize their returns might charge well above the FMR. Given these dynamics, Section 8 voucher holders face significant constraints. The FMR is designed to ensure that voucher holders do not spend more than 30% of their income on housing. However, the disparity between FMR and actual rents means that many landlords may not accept vouchers due to the lower rent rates they offer compared to market rates. This could limit the availability of suitable housing options for voucher recipients. #### Affordability & Renter Profile ZIP code 89122 has a population of 53,724, with 42.0% of residents being renters. The occupancy rate is 88.5%, indicating a fairly tight rental market where most available units are occupied. Given that 42.0% of the population are renters, there is a substantial demand for rental properties. However, the median household income of $63,846 suggests that affordability is a concern for many residents, especially those who rely on Section 8 vouchers. The high price-to-FMR ratio of 13.7x implies that the rental market is expensive relative to the FMR. This makes it challenging for low-income renters to find affordable housing without assistance. As a result, the rental market is likely to be competitive, with many renters vying for limited affordable units. This tight market condition can lead to higher rents and potentially fewer vacancies, making it difficult for voucher holders to secure housing. #### Investor Angle From an investor perspective, the ZIP code 89122 presents both opportunities and challenges. The FMR for a two-bedroom unit is $1590, but the actual market rent is much higher, given the Zillow median price and the price-to-FMR ratio. Investors who focus on Section 8 vouchers must consider whether they can achieve positive cash flow at the FMR. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical expenses associated with owning and renting out a property. These include mortgage payments, property taxes, insurance, maintenance, and other operational costs. Assuming a conservative estimate of 75% of the Zillow median price as the purchase cost, the price of a two-bedroom unit would be around $196,016.25 ($261,355 * 0.75). With a typical mortgage rate of 5%, the monthly mortgage payment would be approximately $1,100. Adding property taxes (estimated at 1.2% of the purchase price), insurance, and maintenance, the total monthly expenses could exceed $1590, making it challenging to achieve positive cash flow solely through Section 8 vouchers. In terms of investment grade, ZIP code 89122 appears to be moderately risky. While the demand for rental properties is strong, the gap between FMR and market rents is significant. Investors should carefully evaluate their ability to manage properties at FMR levels and consider the potential for vacancy or non-payment risks. #### Specific Actionable Insights 1. **Targeting Affordable Units**: Investors should focus on acquiring properties that are closer to the FMR. A two-bedroom unit priced at $1590 per month would be more attractive to voucher holders and could help secure steady tenancy. However, finding such units may be challenging given the high price-to-FMR ratio. 2. **Diversifying Tenant Base**: To mitigate risk, investors should consider diversifying their tenant base beyond just Section 8 voucher holders. By accepting a mix of tenants, including those who can afford market rates, investors can balance their income streams and reduce dependency on government subsidies. 3. **Improving Property Value**: Investors could consider purchasing properties below the Zillow median price and improving them to command higher rents. For example, a two-bedroom unit purchased for $200,000 could be renovated to increase its value and attract market-rate tenants willing to pay more than the FMR. #### Bottom Line For Section 8-focused investors, ZIP code 89122 presents a mixed picture. While the demand for rental properties is robust, the high price-to-FMR ratio and strong competition in the rental market make achieving positive cash flow challenging. Therefore, the recommendation for investors is to **Hold**. They should wait for more favorable conditions or consider diversifying their investments to include a mix of market-rate and subsidized tenants. ### Summary ZIP code 89122 in Las Vegas, NV, is a dynamic rental market with strong demand and limited affordable housing options. Section 8 voucher holders face significant constraints due to the high price-to-FMR ratio, which is 13.7x. The median household income of $63,846 further complicates affordability for low-income renters. From an investment standpoint, achieving positive cash flow at FMR levels is difficult, and the recommendation is to hold until market conditions improve or to diversify the tenant base to include market-rate renters.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.