Location: Nye County, NV | Metro: Lander County, NV
| Unit Size | Monthly FMR |
|---|---|
| Studio | $890 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,620 |
| 4 Bedrooms | $1,930 |
| 5 Bedrooms | $2,239 |
| 6 Bedrooms | $2,508 |
| 7 Bedrooms | $2,709 |
| 8 Bedrooms | $2,844 |
U.S. Census Bureau data (2024)
The analysis for Section 8 properties in ZIP code 89310 is based on the disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area as of fiscal year 2026 is set at $1,210. However, the market rent for the area is listed as N/A, which suggests that there might be limited data available or significant variability in rental prices. Despite this lack of precise market rent figures, the implications of the FMR can still be analyzed.
To state the gap explicitly, we must assume that the market rent is higher than the FMR given the typical dynamics of housing markets. In ZIP 89310, where only 18.6% of residents are renters, landlords face a unique challenge in attracting and retaining tenants. The median home value stands at $147,126, indicating a relatively affluent neighborhood. With a median income of N/A, it's challenging to determine the exact financial capacity of the residents but the high median home value suggests that many homeowners have disposable incomes above average.
The cost of housing voucher tenants below open-market rates is a critical consideration for landlords and small-portfolio investors. When the FMR is lower than the market rent, as is likely the case here, landlords who accept Section 8 vouchers are essentially agreeing to rent their units at a discount compared to what they could charge on the open market. This can lead to reduced cash flow and lower yields on investment properties. For instance, if the actual market rent were hypothetically $1,500, accepting a Section 8 voucher tenant would mean renting at a rate that is $290 less per month, or approximately 19.3% below the market rate. This scenario makes it a yield play, where landlords might see a decrease in immediate rental income but gain other benefits such as guaranteed payments and lower vacancy rates.
Investors should weigh these factors carefully against the local economic conditions. The high median home value and low percentage of renters suggest that while the immediate rental income might be lower due to the FMR constraints, the overall demand for rentals could be stable, benefiting from the attractiveness of the area to those seeking affordable housing options. Moreover, the presence of Section 8 vouchers can serve as a stabilizing force in an otherwise volatile rental market, ensuring a steady stream of income even when market rents fluctuate.
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.