Section 8 Fair Market Rent (FMR) for ZIP 89149 - 2027

Investment Score for ZIP 89149

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	$1,550
1 Bedroom	$1,690
2 Bedrooms	$1,990
3 Bedrooms	$2,740
4 Bedrooms	$3,130
5 Bedrooms	$3,631
6 Bedrooms	$4,067
7 Bedrooms	$4,392
8 Bedrooms	$4,612

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,690	$181,190	0.93%	C
2BR	$1,990	$312,585	0.64%	D
3BR	$2,740	$409,196	0.67%	D
4BR	$3,130	$664,012	0.47%	F
5BR	$3,631	$846,326	0.43%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 89149 (Las Vegas, NV) #### Section 8 Voucher Dynamics In ZIP code 89149, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $2,060 per month for 2026. This figure represents 24.3% of the median household income in the area, which stands at $101,697. However, the actual rent prices can be significantly higher. For instance, the Zillow median price for a two-bedroom property is $317,947, which translates to a monthly rental cost of approximately $1,325 based on a typical mortgage payment scenario. Given that the FMR is $2,060, the price-to-FMR ratio is 12.9x, indicating that actual rental prices are much higher than the FMR. This discrepancy poses significant constraints for voucher holders. While the FMR is designed to ensure that housing costs do not exceed a reasonable percentage of income, the actual rental market in 89149 far exceeds these guidelines. Consequently, voucher holders may struggle to find properties that accept their vouchers, as landlords might prefer higher-paying tenants who can afford the actual market rates. #### Affordability & Renter Profile The population of ZIP 89149 is 45,202, with 29.2% of residents being renters. The occupancy rate is quite high at 93.8%, suggesting that the rental market is relatively tight. This means that there is a strong demand for rental units, but the supply is limited, leading to higher rents. Given the median household income of $101,697, the average renter in 89149 likely earns a substantial income, making them more capable of affording higher rents compared to areas with lower incomes. However, the 29.2% renter population indicates that there is still a considerable segment of the population that relies on rental housing. This group includes families, young professionals, and individuals who may not have the financial means to purchase homes outright. The affordability issue is further highlighted by the fact that the FMR for a three-bedroom unit is $2,860, while the Zillow median price for a comparable property would translate to a monthly rental cost well above this amount. Therefore, it is clear that the rental market in 89149 is not particularly affordable for those relying solely on Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 89149 presents a mixed picture. The actual rental market prices are significantly higher than the FMR, which means that properties rented out to voucher holders may not generate sufficient cash flow to cover expenses such as mortgage payments, maintenance, and property taxes. To illustrate, let’s consider a two-bedroom property. At the FMR of $2,060, the investor would receive this amount as rent. However, the actual market price suggests that the investor could potentially charge around $1,325 per month based on the Zillow median price. This implies that the investor would need to rely on other sources of income or subsidies to make up the difference between the FMR and the actual market rent. The investment grade in this ZIP code would be considered moderate to low for Section 8-focused investors due to the high price-to-FMR ratio. This ratio indicates that the rental market is overpriced relative to the FMR, which is a key metric for determining the feasibility of Section 8 investments. #### Specific Actionable Insights 1. **Focus on Higher-Rent Properties**: Given the high price-to-FMR ratio, investors should focus on acquiring properties that can command higher rents. For example, a four-bedroom property with an FMR of $3,280 would be more financially viable than a two-bedroom property with an FMR of $2,060. This strategy allows investors to maximize their potential rental income while still adhering to the FMR guidelines. 2. **Consider Mixed-Income Developments**: Investors might want to explore opportunities in mixed-income developments where some units are rented to voucher holders and others to market-rate tenants. This approach can help balance the lower cash flow from Section 8 units with higher cash flow from non-voucher units, providing a more stable overall return. 3. **Evaluate Property Management Costs**: Due to the tight rental market and high occupancy rates, property management costs can be a significant factor. Investors should carefully evaluate the costs associated with managing properties in this ZIP code, including vacancy rates, maintenance, and administrative expenses. Ensuring that these costs are covered by the FMR is crucial for maintaining profitability. #### Bottom Line Based on the provided data, the recommendation for Section 8-focused investors in ZIP code 89149 is to **Skip** this market. The high price-to-FMR ratio and the tight rental market suggest that properties rented to voucher holders would likely generate insufficient cash flow to cover operational costs. Additionally, the limited availability of properties that accept vouchers makes it challenging to find suitable investment opportunities. Investors looking to enter this market should consider alternative strategies or ZIP codes with more favorable conditions for Section 8 investments.

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.