Section 8 Fair Market Rent (FMR) for ZIP 89147 - 2027

Investment Score for ZIP 89147

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	$1,520
1 Bedroom	$1,670
2 Bedrooms	$1,960
3 Bedrooms	$2,690
4 Bedrooms	$3,080
5 Bedrooms	$3,573
6 Bedrooms	$4,002
7 Bedrooms	$4,322
8 Bedrooms	$4,538

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	$1,670	$194,404	0.86%	C
2BR	$1,960	$283,015	0.69%	D
3BR	$2,690	$398,651	0.67%	D
4BR	$3,080	$481,266	0.64%	D
5BR	$3,573	$593,067	0.6%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 89147 (Las Vegas, NV) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 89147 in Las Vegas, NV, as set by HUD for 2026, is $2050 for a two-bedroom unit. This represents 32.8% of the median household income of $74,985. However, the actual rental market price for a two-bedroom unit is significantly higher, with Zillow reporting a median price of $290,809. The price-to-FMR ratio of 11.8x indicates that actual rents are far above the FMR. For example, a two-bedroom unit priced at $290,809 would be $11.8 times the FMR of $2050. This means that voucher holders face significant constraints in finding affordable housing. A landlord who accepts a Section 8 voucher for a two-bedroom unit would receive only $2050 per month, which is well below the market rate. Consequently, landlords may be less inclined to accept vouchers unless they have strong incentives or are mandated by local regulations. #### Affordability & Renter Profile ZIP code 89147 has a high renter population, with 49.4% of households being renters. The occupancy rate of 94.0% suggests a tight rental market where demand is close to supply, making it challenging for renters to find available units. Given that 32.8% of the median household income is allocated towards a two-bedroom unit’s FMR, it is clear that many residents are struggling to afford housing. The median household income of $74,985 is relatively high compared to other areas in Las Vegas, indicating that the population here is likely middle-class. However, the high renter percentage and tight market conditions suggest that there is a significant portion of the population that finds housing unaffordable. This tight market condition also implies that there could be upward pressure on rents, further exacerbating affordability issues. #### Investor Angle From an investor perspective, the ZIP code 89147 presents a mixed picture. The high market prices indicate potential for capital appreciation, but the low FMR relative to market rates makes it challenging to achieve positive cash flow from Section 8 vouchers alone. To illustrate, a two-bedroom unit priced at $290,809 would typically rent for around $2423 per month based on typical mortgage payments and maintenance costs. However, the FMR of $2050 is substantially lower, meaning that landlords would need to rely on non-voucher sources of income or other subsidies to make ends meet. Given the high price-to-FMR ratio, the investment grade for properties in this ZIP code is likely to be lower for Section 8-focused investors. The primary challenge is achieving a positive cash flow while maintaining compliance with voucher programs. Investors might consider diversifying their portfolio or seeking additional revenue streams beyond just the rental income. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, smaller units such as one-bedroom apartments might be more attractive for Section 8 voucher holders. The FMR for a one-bedroom unit is $1750, which is still significantly below the market rate. Investors should consider acquiring properties with a mix of unit sizes to cater to both voucher holders and market-rate tenants. 2. **Utilize Local Programs**: There may be local government programs or incentives that can help bridge the gap between FMR and market rates. For instance, some cities offer tax breaks or other financial incentives to landlords who accept Section 8 vouchers. Investigating these programs could provide additional benefits that make the investment more viable. 3. **Consider Mixed-Income Developments**: Developing properties that cater to both low-income and middle-income families could be a strategic approach. By offering a mix of units, some at FMR and others at market rates, investors can balance their cash flow and appeal to a broader range of tenants. #### Bottom Line Based on the provided data, the recommendation for Section 8-focused investors in ZIP code 89147 is to **skip** this area. The high price-to-FMR ratio and tight rental market make it difficult to achieve positive cash flow solely through Section 8 vouchers. While there is potential for capital appreciation, the challenges in securing positive cash flow and the high competition in the rental market suggest that this ZIP code may not be ideal for investors looking to focus primarily on Section 8 properties.

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.