Section 8 Fair Market Rent (FMR) for ZIP 89123 - 2027

Investment Score for ZIP 89123

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	$1,630
2 Bedrooms	$1,910
3 Bedrooms	$2,630
4 Bedrooms	$3,000
5 Bedrooms	$3,480
6 Bedrooms	$3,898
7 Bedrooms	$4,210
8 Bedrooms	$4,421

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	$1,630	$186,381	0.87%	C
2BR	$1,910	$283,077	0.67%	D
3BR	$2,630	$432,133	0.61%	D
4BR	$3,000	$532,673	0.56%	F
5BR	$3,480	$624,819	0.56%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 89123 (Las Vegas, NV) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 89123 in Las Vegas, NV, as set by HUD for 2026, is $1990 for a two-bedroom unit. This represents 28.3% of the median household income in the area, which is $84,428. However, the actual rental market is significantly higher. The Zillow median price for a two-bedroom unit is $293,925, indicating a price-to-FMR ratio of 12.3 times. This suggests that the actual rent for a two-bedroom unit could be around $1990 * 12.3 = $24,577 per year, or approximately $2048 per month. Therefore, the actual rents are substantially higher than the FMR, creating a significant constraint for Section 8 voucher holders. They would find it challenging to secure housing that meets both their voucher limits and the market rates. #### Affordability & Renter Profile ZIP code 89123 has a population of 58,205, with 40.6% of residents being renters. This indicates a substantial demand for rental properties, suggesting that the market is relatively tight. The occupancy rate of 91.8% further supports this conclusion, as it shows that most available units are already occupied. Given the high rent-to-income ratio and the limited supply of affordable units, the typical renter profile likely includes individuals and families who are either low-income or middle-class, struggling to afford market-rate rentals. The median household income of $84,428 suggests that while some residents can afford higher rents, many may rely on assistance programs like Section 8 to make ends meet. #### Investor Angle From an investor perspective, the ZIP code 89123 presents a mixed picture. The FMR for a two-bedroom unit is $1990, but the actual market rent is estimated to be around $2048 per month. This means that if an investor were to purchase a property at the median price of $293,925 and rent it out at the FMR, they would likely not achieve positive cash flow due to the high purchase price and associated costs such as property taxes, insurance, and maintenance. To determine the investment grade, we need to consider the potential returns relative to the risks. The high price-to-FMR ratio of 12.3x suggests that the market is overpriced compared to what HUD deems fair. Additionally, the limited number of units that fall within the FMR range makes it difficult for investors to find properties that can generate positive cash flow solely based on Section 8 vouchers. Given these factors, the investment grade for this ZIP code would be considered low for Section 8-focused investors. The primary challenge is finding properties that can be rented out profitably under the voucher program, given the high market rents. #### Specific Actionable Insights 1. **Focus on Affordable Units**: Investors should focus on acquiring properties that are priced below the median market value. For example, a two-bedroom unit priced at $200,000 or less might be more feasible for achieving positive cash flow when rented out at the FMR of $1990. This would require a careful search for off-market deals or properties in less desirable locations within the ZIP code. 2. **Consider Multi-Family Properties**: Single-family homes may be too expensive to generate positive cash flow under Section 8. Instead, investors might want to look into multi-family properties where economies of scale can reduce overall costs per unit. A three-bedroom or four-bedroom unit might be more attractive, as the FMRs are $2770 and $3170 respectively, which are closer to the actual market rents. 3. **Explore Government Programs**: Given the high cost of housing, investors might benefit from exploring additional government programs that provide subsidies or incentives for affordable housing. These programs can help offset the gap between the FMR and the actual market rent, making the investment more viable. #### Bottom Line Based on the analysis, the recommendation for Section 8-focused investors in ZIP code 89123 is to **Skip** purchasing properties at the current median market values. The high price-to-FMR ratio and limited availability of affordable units make it challenging to achieve positive cash flow. Investors should look for opportunities in ZIP codes with lower ratios or consider other types of investments that align better with the financial realities of the area. If they still wish to invest in this ZIP code, they should seek out properties that are significantly below the median market value or explore multi-family options to leverage economies of scale.

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.