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 | $1,260 |
| 1 Bedroom | $1,270 |
| 2 Bedrooms | $1,500 |
| 3 Bedrooms | $2,080 |
| 4 Bedrooms | $2,510 |
| 5 Bedrooms | $2,912 |
| 6 Bedrooms | $3,261 |
| 7 Bedrooms | $3,522 |
| 8 Bedrooms | $3,698 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,500 | $314,972 | 0.48% | F |
| 3BR | $2,080 | $391,172 | 0.53% | F |
| 4BR | $2,510 | $449,092 | 0.56% | F |
| 5BR | $2,912 | $587,149 | 0.5% | F |
U.S. Census Bureau data (2024)
Based on the latest data for ZIP 89408 (Fernley, NV), the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,490. This figure provides a benchmark for rental housing quality and affordability, indicating that properties renting below this amount could be considered underpriced or undervalued. In contrast, the Zillow Observed Rent Index (ZORI) for the same area stands at $1,807, suggesting that market rents are significantly higher than the FMR, which could indicate a potential gap for affordable housing options. The median home value in Fernley, NV, is $395,996, reflecting a relatively stable housing market where property values have not seen dramatic fluctuations. Renter share is at 28.3%, showing a substantial portion of the population relies on rental housing, which is crucial for investors looking to gauge demand. Median income in the area is $89,552, providing insight into the financial capacity of potential tenants. With an average Days on Market (DOM) of 14 days for rentals, it's clear that there is a steady demand for properties, allowing landlords to turn over units efficiently. Lastly, the price-cut share of 0.1% indicates that very few landlords are needing to reduce their rental rates to attract tenants, suggesting strong market conditions. Given these figures, ZIP 89408 presents a favorable environment for Section 8 investments, particularly in areas where rents are below the $1,490 FMR but still above the $89,552 median income, ensuring both affordability and sustainability.
The gap between the $1,490 FMR and the $1,807 ZORI market rent highlights opportunities for investors who can offer affordable housing solutions. Additionally, the high median home value of $395,996 alongside the 28.3% renter share points to a robust rental market. The short DOM of 14 days and negligible price-cut share of 0.1% further support the idea that rental properties in Fernley, NV, are in high demand and can be rented quickly without compromising on pricing. For landlords and small-portfolio investors, ZIP 89408 represents a solid investment opportunity within the Section 8 program.
Section 8 Verdict: ZIP 89408 is a good bet for Section 8 investments due to its strong rental market fundamentals and the significant difference between the FMR and market rent.
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.