Section 8 Fair Market Rent (FMR) for ZIP 89126 - 2027

FY 2027 Fair Market Rent Rates

The analysis of the Section 8 cap-rate picture for ZIP code 89126 in Nevada reveals some key insights. The Fair Market Rent (FMR) for a two-bedroom apartment in this area for fiscal year 2024 is set at an annual rate of $1640. This figure represents the government's benchmark for rental assistance under the Section 8 program.

However, the market rent for the same type of property is currently not available, indicating that there might be limited data or a lack of recent transactions in the area. Similarly, the median home value is also not available, which suggests that either the data has not been updated or there is insufficient information to determine a reliable median price point.

The implied gross yield when using the FMR can be calculated based on the annual rent of $1640. Assuming a property value that would be typical for the area, if we hypothetically consider a median home value of $250,000, the gross yield would be approximately 0.66%. This calculation is made by dividing the annual rent by the property value. However, it's important to note that this is purely illustrative, as the actual median home value for ZIP 89126 is not known.

In contrast, the scenario where market rent is used would likely result in a higher gross yield, assuming market rents exceed the FMR. Without specific market rent data, we cannot provide an exact figure for this scenario. Nonetheless, it's reasonable to infer that market rents could potentially offer a better return on investment compared to the FMR-based scenario.

The lack of available data on renter density and days on market (DOM) complicates the analysis further. Typically, a higher renter density and lower DOM suggest a more active rental market, which could favor the use of market rent over FMR for calculating gross yields. However, without these specific figures, we cannot make a definitive statement on the relative activity of the rental market in ZIP 89126.

In conclusion, while the FMR provides a baseline for potential rental income under the Section 8 program, achieving a higher gross yield through market rents appears to be the more realistic scenario for investors. The exact figures for market rent and median home value are crucial for a precise analysis, and investors should seek out local real estate agents or other sources to obtain this data.

Data Sources: FMR data from HUD (2027).

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.