Location: Las Vegas-Henderson-North Las Vegas, NV | Metro: Las Vegas-Henderson-North Las Vegas, NV MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,790 |
| 1 Bedroom | $1,960 |
| 2 Bedrooms | $2,300 |
| 3 Bedrooms | $3,160 |
| 4 Bedrooms | $3,620 |
| 5 Bedrooms | $4,199 |
| 6 Bedrooms | $4,703 |
| 7 Bedrooms | $5,079 |
| 8 Bedrooms | $5,333 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP 89179 provides a clear picture of potential investment yields based on Fair Market Rent (FMR) and market rent figures. For a two-bedroom unit, the annualized FMR for FY 2024 stands at $2330, while the Zillow Observed Rent Index (ZORI) indicates a market rent of $2,318.
Given the median home value of $478,232 in this area, we can calculate the implied gross yield for both scenarios. Starting with the FMR, the annual rental income would be $2330 multiplied by 12 months, equating to $27,960 per year. Dividing this by the median home value gives an implied gross yield of approximately 5.85%. For the market rent scenario, using $2,318 as the monthly figure, the annual rental income is $27,816. This translates into a gross yield of about 5.82% when divided by the median home value.
The slight difference between these yields—5.85% for FMR versus 5.82% for market rent—is minimal and suggests that the actual gross yield for properties participating in the Section 8 program in ZIP 89179 is very close to the market rent yield. However, the more realistic scenario for investors is likely the market rent yield of 5.82%, given the 21.7% renter density in the area. This percentage indicates that a significant portion of the population prefers homeownership over renting, which could influence the demand for rental properties, including those under the Section 8 program.
The N/A-day Days on Market (DOM) figure suggests either a very tight rental market or a lack of comprehensive data regarding rental turnovers. In either case, it's important for investors to consider the local rental dynamics and the specific terms of the Section 8 program, such as tenant screening processes and lease durations, when evaluating the feasibility of these investments. While the gross yields are similar, the market rent yield offers a more grounded expectation based on current market conditions and tenant preferences.
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.