Location: Las Vegas-Henderson-North Las Vegas, NV | Metro: Las Vegas-Henderson-North Las Vegas, NV MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,470 |
| 1 Bedroom | $1,610 |
| 2 Bedrooms | $1,890 |
| 3 Bedrooms | $2,600 |
| 4 Bedrooms | $2,970 |
| 5 Bedrooms | $3,445 |
| 6 Bedrooms | $3,858 |
| 7 Bedrooms | $4,167 |
| 8 Bedrooms | $4,375 |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in Section 8 properties in ZIP code 89161 are significant. Firstly, tenant turnover is a critical issue. The Fair Market Rent (FMR) for ZIP 89161 in fiscal year 2024 is set at $1740, but if the market rent remains at N/A, landlords might struggle to attract tenants who qualify for the program, leading to higher turnover rates. This can be costly due to the need for frequent repairs, cleaning, and advertising to fill vacancies.
Vacancy exposure is another concern. With a days on market (DOM) figure of N/A, it's challenging to predict how long a property might remain vacant between tenancies. Vacant properties not only mean lost rental income but also increased maintenance costs and potential damage.
Deferred maintenance poses a risk as well. Given that the typical home value in ZIP 89161 is $1,015,127 and the median household income is $51,250, there's a considerable gap between the cost of upkeep and the financial capacity of many residents. Landlords must be prepared to invest in maintaining their properties to a standard that meets both Section 8 requirements and the expectations of tenants.
However, these risks are balanced by a high concentration of renters. With 15.1% of the population being renters, there is a strong likelihood of high demand for housing vouchers. This can translate into a stable tenant base, as voucher holders typically have a lower rate of eviction and are more likely to stay in their homes longer.
In conclusion, the investment in Section 8 properties in ZIP 89161 presents a moderate risk for a first-time landlord, given the mix of challenges and opportunities.
Data Sources: FMR data from HUD (2027). 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.