Location: Churchill County, NV | Metro: Lyon County, 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 | $1,040 |
| 1 Bedroom | $1,050 |
| 2 Bedrooms | $1,370 |
| 3 Bedrooms | $1,900 |
| 4 Bedrooms | $2,120 |
| 5 Bedrooms | $2,459 |
| 6 Bedrooms | $2,754 |
| 7 Bedrooms | $2,974 |
| 8 Bedrooms | $3,123 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,370 | $266,125 | 0.51% | F |
| 3BR | $1,900 | $394,627 | 0.48% | F |
| 4BR | $2,120 | $467,309 | 0.45% | F |
| 5BR | $2,459 | $582,537 | 0.42% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 89406, which encompasses Fallon, Nevada, and Churchill County, revolve around the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, set at $1,420 per month for the fiscal year 2026. This SAFMR is specifically tailored for this ZIP code, reflecting the unique cost dynamics of the area. In comparison, the local market rent, as indicated by ZORI (Zillow Observed Rent Index), stands at $1,475 for a similar unit.
A landlord participating in the Section 8 program receives rental payments from the Housing Choice Voucher Program. The payment is calculated based on the SAFMR and the tenant's ability to pay, which is typically 30% of their adjusted income. For ZIP 89406, the voucher payment will not exceed the $1,420 SAFMR for a two-bedroom unit. If the tenant's portion is less than the SAFMR, the difference is made up by the voucher program.
To illustrate, if a tenant has an adjusted income of $1,500 per month, their contribution towards rent would be $450 (30% of $1,500). The remaining amount, up to the SAFMR of $1,420, would be covered by the voucher program. Therefore, the landlord would receive $1,420, with $450 coming from the tenant and the rest from the government.
Utility allowances are also factored into the overall payment structure but do not directly affect the base rent paid by the voucher program. These allowances vary and can cover costs such as electricity, water, and gas, depending on the local housing authority's policies. Landlords should note that while these utilities might be covered, they are separate from the base rent and do not increase the total reimbursement above the SAFMR.
In ZIP 89406, where the SAFMR is $1,420 and the market rent is $1,475, landlords face a slight shortfall of $55 per month for a two-bedroom unit. This gap exists because the voucher program will only reimburse up to the SAFMR, even though the market rent is higher. However, this analysis assumes the tenant’s portion plus the voucher exactly matches the SAFMR; in practice, the reimbursement could be higher if the tenant’s share of the rent is larger due to a higher income.
Landlords must understand that the SAFMR is a cap on the reimbursement, not a fixed payment. The actual amount received depends on the tenant's income and the terms agreed upon by the housing authority. While the SAFMR sets the maximum, it ensures that landlords are paid a fair rate that reflects the economic conditions of ZIP 89406.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.