Section 8 Fair Market Rent (FMR) for ZIP 89137 - 2027

FY 2027 Fair Market Rent Rates

The analysis of the Section 8 cap-rate scenario for ZIP 89137 in Unknown, Nevada, is limited by the availability of certain key data points. However, we can still derive a rough picture based on the information provided.

The Fair Market Rent (FMR) for a 2-bedroom apartment in ZIP 89137 for fiscal year 2024 is set at an annualized rate of $1640. This figure represents the maximum rental subsidy that a landlord could receive per unit through the Section 8 program. Given that the median home value is not available, we cannot directly calculate the implied gross yield for this scenario. However, it's important to note that this FMR is significantly lower than typical market rents, suggesting a low gross yield when compared to potential alternative rental income.

In terms of market rent, the data indicates that it is not available. Without this information, it's challenging to provide a direct comparison to the Section 8 rental rates. The absence of market rent data implies that there might be limited non-subsidized rental activity in the area, making the Section 8 program a potentially stable source of income for landlords.

The renter density is also not specified, which is crucial for understanding the demand for rental properties. A higher renter density would typically indicate a stronger market for rentals, whether subsidized or not. Similarly, the Days on Market (DOM) is not provided, which is another key metric for assessing the speed at which rental properties are occupied. A shorter DOM would suggest a quicker turnaround and potentially less vacancy risk.

Given the lack of specific market rent data and the incomplete metrics on renter density and DOM, it's difficult to definitively state which scenario is more realistic. However, the low FMR suggests that the gross yield from Section 8 participation would be modest, particularly if the median home values in the area are high. For landlords and small-portfolio investors, the decision to participate in the Section 8 program should be weighed against the stability of income versus the potential for higher yields from market-rate rentals, assuming such data were available.

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.