Section 8 Fair Market Rent (FMR) for ZIP 89183 - 2027

Investment Score for ZIP 89183

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	$1,480
1 Bedroom	$1,620
2 Bedrooms	$1,900
3 Bedrooms	$2,610
4 Bedrooms	$2,990
5 Bedrooms	$3,468
6 Bedrooms	$3,884
7 Bedrooms	$4,195
8 Bedrooms	$4,405

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	$1,620	$190,469	0.85%	C
2BR	$1,900	$304,285	0.62%	D
3BR	$2,610	$381,181	0.68%	D
4BR	$2,990	$489,010	0.61%	D
5BR	$3,468	$630,715	0.55%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 89183 (Las Vegas, NV) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 89183, as set by HUD for 2026, is $1820 for a two-bedroom unit. This represents 25.0% of the median household income in the area, which is $87,355. However, the actual median rent for a two-bedroom unit, according to Zillow, is $313,450. The price-to-FMR ratio is 14.4x, indicating that actual rental prices are significantly higher than the FMR. This means that Section 8 voucher holders face significant constraints when trying to find housing within their budget. For instance, a voucher holder with a two-bedroom unit would only be able to pay up to $1820 per month, whereas the actual market rent is much higher. This disparity can make it challenging for voucher holders to secure housing without substantial out-of-pocket expenses, which can be burdensome given their limited financial resources. #### Affordability & Renter Profile ZIP code 89183 has a population of 42,996, with 44.9% of residents being renters. The occupancy rate stands at 92.3%, suggesting that the market is relatively tight, with most available units being occupied. Given the high rent-to-income ratio, the typical renter profile in this area likely includes individuals and families who have higher incomes relative to the median, possibly including young professionals, middle-class families, and retirees who can afford the higher costs. The median household income of $87,355 indicates that there is a significant portion of the population that can afford market rates. However, for those relying on Section 8 vouchers, the situation is quite different. With the FMR representing only 25% of the median income, it suggests that the remaining 75% of the income is allocated to other living expenses, leaving little room for additional costs. This makes it difficult for low-income households to find affordable housing options, especially considering the high actual market rents. #### Investor Angle From an investor perspective, the ZIP code 89183 presents a mixed picture. While the actual market rents are high, the FMRs set by HUD are considerably lower. An investor looking to target Section 8 voucher holders must consider whether they can achieve positive cash flow at these FMR levels. For a two-bedroom unit, the FMR is $1820, but the actual median rent is $313,450. If we assume the median rent translates to a monthly rent of approximately $2612 (based on the average annual rent of $313,450), then the difference between the actual rent and the FMR is $792 per month. This gap highlights the challenge for landlords who want to participate in the Section 8 program while maintaining profitability. The investment grade in this ZIP code would be considered moderate to low for Section 8-focused investors due to the high actual market rents and the stringent FMR limits. Investors might find it more profitable to cater to the broader market rather than solely focusing on Section 8 tenants. #### Specific Actionable Insights 1. **Targeting Higher-Income Renters**: Given the high actual market rents and the tight occupancy rate, investors should consider targeting higher-income renters who can afford the premium prices. This could involve developing or renovating properties to meet the needs of young professionals and middle-class families, who are more likely to pay the market rate. 2. **Diversifying Tenant Base**: To mitigate the risk associated with the Section 8 program, investors should diversify their tenant base. This could mean accepting a mix of Section 8 voucher holders and market-rate tenants. By doing so, landlords can balance the lower rents from Section 8 tenants with higher rents from market-rate tenants, achieving better overall cash flow. 3. **Understanding Local Regulations**: It’s crucial for investors to understand local regulations and requirements for participating in the Section 8 program. This includes knowing the specific rules and guidelines set by the local housing authority, which can impact the feasibility of renting to Section 8 tenants. #### Bottom Line Given the high actual market rents and the tight occupancy rate, the ZIP code 89183 is not an ideal market for Section 8-focused investors. The significant gap between FMR and actual market rents makes it challenging to achieve positive cash flow purely through Section 8 vouchers. Therefore, the recommendation for investors is to **Skip** this ZIP code if their primary focus is on Section 8 tenants. Instead, they should consider areas where the FMR is closer to the actual market rents, or focus on higher-income renters in this ZIP code to ensure profitability.

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.