Section 8 Fair Market Rent (FMR) for ZIP 89178 - 2027

Investment Score for ZIP 89178

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	$1,700
1 Bedroom	$1,860
2 Bedrooms	$2,190
3 Bedrooms	$3,010
4 Bedrooms	$3,450
5 Bedrooms	$4,002
6 Bedrooms	$4,482
7 Bedrooms	$4,841
8 Bedrooms	$5,083

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
2BR	$2,190	$323,162	0.68%	D
3BR	$3,010	$433,163	0.69%	D
4BR	$3,450	$515,222	0.67%	D
5BR	$4,002	$650,729	0.62%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 89178 (Las Vegas, NV) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 89178 in Las Vegas, Nevada, are as follows for 2026: - 0BR: $1740 - 1BR: $1930 - 2BR: $2270 (which is 25.0% of the median household income) - 3BR: $3160 - 4BR: $3620 These FMRs represent the maximum rent that a Section 8 voucher holder can pay. However, the actual rental market in this area may present different dynamics. For instance, the Zillow median price for a 2BR property is $328,835, which translates to a price-to-FMR ratio of 12.1x. This means that the median price of a 2BR home is approximately 12.1 times the FMR for a 2BR unit. Given the high price-to-FMR ratio, it is likely that many properties in this ZIP code exceed the FMR limits, making them unaffordable for Section 8 voucher holders. This creates a significant constraint for voucher holders, who may find it challenging to secure housing within their budget. #### Affordability & Renter Profile ZIP code 89178 has a population of 44,165, with 27.4% of residents being renters. The occupancy rate is quite high at 96.3%, indicating a robust demand for housing in this area. Given the median household income of $108,806, the majority of residents are likely to be middle-class individuals or families who can afford higher rents. However, the affordability issue becomes apparent when we consider the FMRs. The FMR for a 2BR unit is $2270, which is only 25.0% of the median income. This suggests that the rental market is relatively expensive compared to the income levels of the residents. As such, the market appears to be tight, with limited options available for low-income renters who rely on Section 8 vouchers. #### Investor Angle From an investor's perspective, the key question is whether the ZIP code offers cash-flow positive opportunities at the FMR rates. Given the high price-to-FMR ratio, it is unlikely that investors will find many properties that are both affordable and cash-flow positive at the FMR rates. For example, a 2BR property priced at $328,835 would need to generate monthly rental income of around $2740 to break even, assuming a conservative mortgage rate and property management costs. However, the FMR for a 2BR unit is only $2270, which is significantly lower. This implies that investors focusing solely on Section 8 vouchers would struggle to achieve positive cash flow. In terms of investment grade, ZIP code 89178 appears to be a challenging market for Section 8-focused investors due to the high cost of properties relative to the FMR. The tight rental market and high occupancy rate suggest that there is strong demand for housing, but the limited number of units that fall within the FMR range makes it difficult to find suitable investment opportunities. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Investors should focus on acquiring smaller units, such as 0BR or 1BR properties, where the FMR is lower ($1740 and $1930 respectively). These units are more likely to be within the budget of Section 8 voucher holders, providing better opportunities for positive cash flow. 2. **Consider Lower Priced Properties**: While the median price for a 2BR property is $328,835, investors might look for properties below this median price to improve their chances of achieving positive cash flow. For instance, a 2BR property priced at $270,000 could potentially generate a monthly rental income of $2250, which is close to the FMR of $2270, allowing for slight profit margins after accounting for expenses. #### Bottom Line Given the high price-to-FMR ratio and the limited number of properties that fall within the FMR range, ZIP code 89178 is not recommended for Section 8-focused investors. The recommendation is to **Skip** this ZIP code unless you can find exceptionally low-priced properties or smaller units that are more likely to be affordable for voucher holders. The tight rental market and high occupancy rate make it a challenging environment for those relying solely on Section 8 vouchers to secure tenants.

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.