Section 8 Fair Market Rent (FMR) for ZIP 89131 - 2027

Investment Score for ZIP 89131

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	$1,680
1 Bedroom	$1,840
2 Bedrooms	$2,160
3 Bedrooms	$2,970
4 Bedrooms	$3,400
5 Bedrooms	$3,944
6 Bedrooms	$4,417
7 Bedrooms	$4,770
8 Bedrooms	$5,009

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	$1,840	$221,526	0.83%	C
2BR	$2,160	$351,366	0.61%	D
3BR	$2,970	$440,747	0.67%	D
4BR	$3,400	$610,191	0.56%	F
5BR	$3,944	$790,987	0.5%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 89131 (Las Vegas, NV) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 89131 is set by HUD for 2026. For a two-bedroom unit, the FMR is $1910. This represents 19.7% of the median household income of $116,468, indicating that it is relatively affordable for residents. However, the actual rental market price for a two-bedroom unit is significantly higher, with Zillow reporting a median price of $358,221. The price-to-FMR ratio of 15.6x suggests that the actual rent prices are much higher than what is considered fair market rent. This disparity creates significant constraints for voucher holders. They can only afford units priced at or below the FMR, which means they would have difficulty finding a two-bedroom unit at $1910 per month given the actual market prices. As a result, voucher holders might be limited to smaller units or face challenges in securing housing that meets their needs. #### Affordability & Renter Profile ZIP code 89131 has a population of 50,731, with 18.4% of residents being renters. The occupancy rate is 96.4%, indicating a very tight market where nearly all available housing is occupied. Given the high median household income of $116,468, the area is likely to attract higher-income renters who can afford the premium prices. The 19.7% of median income required for a two-bedroom unit at FMR suggests that the area is generally affordable for those earning close to the median income. However, the actual market prices are far above this level, making it challenging for lower-income individuals to find affordable housing without assistance. #### Investor Angle From an investor perspective, the ZIP code presents mixed opportunities. The FMR for a two-bedroom unit is $1910, but the actual market price is $358,221. This means that properties rented at FMR would likely not generate sufficient cash flow to cover the mortgage and other expenses associated with owning a property valued at $358,221. The price-to-FMR ratio of 15.6x indicates that the market is overpriced relative to the FMR, making it difficult for investors to achieve positive cash flow when renting to Section 8 voucher holders. In terms of investment grade, the high price-to-FMR ratio suggests that the ZIP code is not a favorable location for investors focusing on Section 8 vouchers. The mismatch between FMR and actual market prices implies that there is little room for profit unless the investor can secure a property at a price significantly below the median market value. #### Specific Actionable Insights 1. **Target Smaller Units**: Investors should focus on acquiring one-bedroom or studio units, which have lower FMRs ($1630 and $1470 respectively). These units are more likely to align with the actual market conditions and provide a better chance for positive cash flow when rented to Section 8 voucher holders. 2. **Seek Below-Median Properties**: To ensure profitability, investors should look for properties that are priced below the median market value. For example, if an investor can acquire a two-bedroom unit for less than $230,000 (approximately 65% of the median market price), they may be able to achieve positive cash flow while still renting at the FMR. #### Bottom Line Given the high price-to-FMR ratio and the tight market conditions, the recommendation for Section 8-focused investors is to **Skip** this ZIP code. The current market dynamics make it challenging to find properties that can generate positive cash flow when rented to voucher holders. Instead, investors should consider ZIP codes with a lower price-to-FMR ratio and more affordable housing options to maximize their chances of success in the Section 8 rental market.

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.