Location: Las Vegas-Henderson-North Las Vegas, NV | Metro: Las Vegas-Henderson-North Las Vegas, NV MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,970 |
| 1 Bedroom | $2,150 |
| 2 Bedrooms | $2,530 |
| 3 Bedrooms | $3,480 |
| 4 Bedrooms | $3,980 |
| 5 Bedrooms | $4,617 |
| 6 Bedrooms | $5,171 |
| 7 Bedrooms | $5,585 |
| 8 Bedrooms | $5,864 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,530 | $527,864 | 0.48% | F |
| 3BR | $3,480 | $644,221 | 0.54% | F |
| 4BR | $3,980 | $914,193 | 0.44% | F |
| 5BR | $4,617 | $1,185,344 | 0.39% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 89138, located in Las Vegas, NV, reveals that the Fair Market Rent (FMR) set by HUD for fiscal year 2024 is $2,460. This figure contrasts with the market rent of $2,787, as indicated by the Zillow Observed Rent Index (ZORI). Given these numbers, landlords can expect that voucher tenants will cashflow marginally at the HUD FMR rate, as it falls slightly below the market average. However, cashflow improvements can be realized with premium units that attract higher rents.
To further understand the investment potential, consider the median home value in ZIP 89138, which stands at $776,862. The rent-to-price ratio, calculated using the market rent of $2,787, is approximately 0.36%, indicating a relatively low rental yield compared to the property values. This suggests that while the area may offer strong appreciation potential due to high home values, the immediate cashflow might be modest.
The dynamics between renting and buying in this market are also worth noting. The median Days on Market (DOM) is 52 days, and the share of homes that have been listed with a price cut is 0.3%. These figures indicate a seller's market where demand outstrips supply, making it easier for landlords to find tenants and potentially negotiate better terms.
In summary, the strongest investor angle in ZIP 89138 is likely appreciation, given the high median home values and the current seller's market conditions. While cashflow may be modest at the HUD FMR rate, the potential for property value growth offers a compelling long-term investment opportunity.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.