Location: Lyon 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 | $1,020 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,680 |
| 4 Bedrooms | $2,020 |
| 5 Bedrooms | $2,343 |
| 6 Bedrooms | $2,624 |
| 7 Bedrooms | $2,834 |
| 8 Bedrooms | $2,976 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,210 | $260,760 | 0.46% | F |
| 3BR | $1,680 | $392,141 | 0.43% | F |
| 4BR | $2,020 | $464,828 | 0.43% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate scenario for ZIP code 89429, Silver Springs, NV, can be analyzed using the Fair Market Rent (FMR) and market rent figures provided. For a two-bedroom apartment, the annualized FMR is $15,240 ($1,270 per month), while the market rent stands at $13,884 ($1,157 per month).
To calculate the gross yield, we use the median home value of $355,874 as our investment basis. The implied gross yield when using the FMR is approximately 4.3%. This is derived by dividing the annual rental income ($15,240) by the median home value ($355,874). In contrast, the gross yield based on the market rent is about 3.9%, calculated by dividing the annual market rent ($13,884) by the median home value.
The difference between these two yields highlights the potential disparity between government-set rental rates and actual market conditions. Given the 15.4% renter density in Silver Springs, it's important to consider the likelihood of finding tenants willing to pay the higher FMR set by the government. However, the fact that the Days on Market (DOM) is listed as N/A suggests either limited data or a rapidly changing market condition, which could impact the ease of renting out properties at either rate.
While the 4.3% gross yield from FMR appears more attractive, it's crucial to recognize that the actual performance might align closer to the 3.9% yield based on market rent. This is due to the potential difficulty in securing tenants who are eligible for and willing to accept Section 8 housing at the FMR level, especially considering the relatively low renter density in the area. Therefore, for landlords and small-portfolio investors, the market rent figure should serve as a more realistic benchmark for expected returns, although the FMR provides an upper limit on what might be achievable through the program.
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.