Section 8 Fair Market Rent (FMR) for ZIP 89129 - 2027

Investment Score for ZIP 89129

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	$1,370
1 Bedroom	$1,500
2 Bedrooms	$1,760
3 Bedrooms	$2,420
4 Bedrooms	$2,770
5 Bedrooms	$3,213
6 Bedrooms	$3,599
7 Bedrooms	$3,887
8 Bedrooms	$4,081

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	$1,500	$215,386	0.7%	D
2BR	$1,760	$298,261	0.59%	F
3BR	$2,420	$403,130	0.6%	D
4BR	$2,770	$514,366	0.54%	F
5BR	$3,213	$643,952	0.5%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 89129 (Las Vegas, NV) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 89129 is set by HUD for 2026. The FMR for a two-bedroom apartment is $1900, which represents 25.4% of the median household income of $89,798. This indicates that HUD has established a reasonable rent benchmark for voucher holders. However, it is important to consider how these FMRs compare to actual rents in the area. According to Zillow, the median price for a two-bedroom home in this ZIP code is $306,510. The price-to-FMR ratio is 13.4x, meaning that the median home value is significantly higher than the FMR for renting a similar-sized unit. This high ratio suggests that actual rental rates could be higher than the FMR. For instance, if a landlord charges $2000 for a two-bedroom apartment, a voucher holder would only be able to cover $1900, leaving them to pay the additional $100 out-of-pocket. This can create financial strain for voucher holders and limit their ability to find suitable housing. #### Affordability & Renter Profile ZIP code 89129 has a population of 53,435, with 28.0% of residents being renters. The occupancy rate stands at 95.3%, indicating a relatively tight rental market. Given the median household income of $89,798, the area is moderately affluent, but the high proportion of renters suggests that many individuals are seeking affordable housing options. The 28.0% renter population implies a significant demand for rental properties, particularly those that are affordable. With the FMR for a two-bedroom apartment at $1900, which is only 25.4% of the median income, it appears that the market is somewhat balanced for low-income renters. However, the high price-to-FMR ratio of 13.4x suggests that there might be upward pressure on rental prices, making it challenging for some renters to find affordable units. #### Investor Angle From an investor perspective, the ZIP code's cash flow potential at FMR needs to be evaluated. The FMR for a two-bedroom apartment is $1900, which is the maximum amount that a Section 8 voucher holder can contribute towards rent. To determine whether this ZIP code is cash-flow positive, we need to consider the typical expenses associated with owning and managing rental property, such as mortgage payments, property taxes, insurance, maintenance, and utilities. Assuming a conservative estimate where the total monthly expenses (excluding mortgage) are around $1000, an investor would need to ensure that the mortgage payment does not exceed $900 to maintain a positive cash flow. Given the median home value of $306,510, a typical mortgage payment (assuming a 30-year fixed-rate loan at 4.5% interest) would be approximately $1500 per month. This means that even at FMR, the net cash flow would likely be negative unless the investor can reduce other expenses or secure a lower interest rate. The investment grade for this ZIP code can be considered moderate due to the high occupancy rate and strong demand from renters. However, the tight cash flow margins at FMR levels suggest that investors should be cautious about relying solely on Section 8 vouchers for profitability. #### Specific Actionable Insights 1. **Rent Pricing Strategy**: Landlords who want to attract Section 8 voucher holders should consider setting their rent slightly below the FMR to ensure they do not exceed the voucher amount. For example, charging $1850 for a two-bedroom apartment instead of $1900 would make it easier for voucher holders to afford the unit without additional financial burden. 2. **Expenses Management**: Investors should focus on minimizing non-rent-related expenses to improve cash flow. This includes negotiating lower property tax assessments, securing energy-efficient appliances to reduce utility costs, and maintaining a proactive approach to property management to minimize repair and maintenance expenses. 3. **Alternative Funding Sources**: Given the high price-to-FMR ratio, investors might consider supplementing their income through alternative funding sources such as government grants for affordable housing or partnerships with local non-profits that support low-income tenants. #### Bottom Line For Section 8-focused investors, the ZIP code 89129 presents a mixed picture. While the high occupancy rate and strong demand for rental properties are positive indicators, the tight cash flow margins at FMR levels make it challenging to achieve profitability. Therefore, the recommendation for this ZIP code is to **Hold**. Investors should carefully evaluate their cost structures and consider strategies to manage expenses effectively before committing to new investments in this area. Additionally, they should explore opportunities to diversify their income streams beyond just rent to ensure long-term sustainability.

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.