Location: Lyon County, NV | Metro: Reno, NV HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,170 |
| 1 Bedroom | $1,350 |
| 2 Bedrooms | $1,690 |
| 3 Bedrooms | $2,290 |
| 4 Bedrooms | $2,660 |
| 5 Bedrooms | $3,086 |
| 6 Bedrooms | $3,456 |
| 7 Bedrooms | $3,732 |
| 8 Bedrooms | $3,919 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,690 | $387,427 | 0.44% | F |
| 3BR | $2,290 | $427,499 | 0.54% | F |
| 4BR | $2,660 | $532,867 | 0.5% | F |
| 5BR | $3,086 | $600,054 | 0.51% | F |
U.S. Census Bureau data (2024)
The analysis of Section 8 properties in ZIP code 89403, specifically in Dayton, NV, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1470, while the Census American Community Survey (ACS) reports the market rent at $1515. This creates a $45 difference, or approximately 3%, where landlords can either benefit or face challenges depending on their strategy.
When the FMR is lower than the market rent, as it is here, landlords who accept housing vouchers must be prepared to lease units below the prevailing open-market rates. This scenario can lead to reduced cash flow per unit, but it also offers a stable tenant base that is less likely to default on rent payments due to the government subsidy. In Dayton, NV, where the median income stands at $97,153 and the median home value is $453,610, the rental market is relatively small, with only 17.7% of residents renting. Thus, the stability provided by voucher tenants can be particularly attractive in a market dominated by homeownership.
However, the decision to participate in the Section 8 program should consider the potential drawbacks. Accepting voucher tenants means adhering to strict guidelines and inspections, which can increase operational costs. Moreover, the $45 shortfall per unit may need to be compensated through economies of scale or by increasing the number of occupied units. Landlords must weigh these factors against the benefits of a steady stream of income and a lower risk of vacancy in an area where rental demand is limited.
To summarize, the gap between the FMR and market rent in ZIP 89403 presents a nuanced opportunity for landlords. While accepting housing vouchers ensures a reliable tenant base, it also requires managing the financial impact of leasing below market rates. The local context of Dayton, NV, with its high median home values and low percentage of renters, further emphasizes the importance of considering both the risks and rewards of participating in the Section 8 program.
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.