Location: Las Vegas-Henderson-North Las Vegas, NV | Metro: Las Vegas-Henderson-North Las Vegas, NV MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,310 |
| 1 Bedroom | $1,440 |
| 2 Bedrooms | $1,690 |
| 3 Bedrooms | $2,320 |
| 4 Bedrooms | $2,660 |
| 5 Bedrooms | $3,086 |
| 6 Bedrooms | $3,456 |
| 7 Bedrooms | $3,732 |
| 8 Bedrooms | $3,919 |
The analysis of the Section 8 cap-rate picture for ZIP code 89132 in Nevada reveals some limitations due to incomplete data, particularly regarding median home values and market rents. However, we can still derive a rough understanding based on the Fair Market Rent (FMR) for a two-bedroom unit, which stands at an annualized rate of $1640 for fiscal year 2024.
To calculate the implied gross yield, we would typically divide the annual rental income by the property's value. Since the median home value is not available, we cannot provide a precise figure for the gross yield. However, using the FMR as a baseline, landlords and small-portfolio investors should consider that the annual rental income per property under Section 8 would be $1640. This amount represents the maximum allowable rent for a two-bedroom unit in this ZIP code.
In the absence of market rent data, it is impossible to compare the gross yields between Section 8 and market rents. However, it is important to note that Section 8 rents are generally lower than market rates, which could impact the overall profitability of properties in this area. The lack of specific data on renter density and days on market (DOM) also hinders a more detailed analysis, but these factors are crucial for understanding the local rental market dynamics.
Given the limited data, the most realistic scenario for investors would be to focus on the guaranteed rental income provided by the Section 8 program, which is $1640 annually for a two-bedroom unit. While this does not offer a direct comparison to market rents, it ensures a stable income stream, which can be particularly attractive in uncertain economic times. Investors should also be aware that the success of any rental property, including those in the Section 8 program, depends heavily on tenant management and maintenance costs, which are not reflected in the gross yield calculation.
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.