Section 8 Fair Market Rent (FMR) for ZIP 89431 - 2027

Location: Reno, NV | Metro: Reno, NV HUD Metro FMR Area

Investment Score for ZIP 89431

F
Monthly Rent (2BR)
$1,690
Median Price (2BR)
$311,617
1% Rule
0.54%
Annual Yield
6.51%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

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

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
1BR $1,350 $261,370 0.52% F
2BR $1,690 $311,617 0.54% F
3BR $2,290 $415,511 0.55% F
4BR $2,660 $469,276 0.57% F
5BR $3,086 $520,068 0.59% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
39,833
Median Household Income
$66,592
Housing Units
17,202
Renter Percentage
54.5%
Occupancy Rate
89.9%
Renter Occupied
8,433

The ZIP code 89431 in Sparks, NV, stands out within Washoe County due to its unique demographic and economic characteristics. With a population of 39,833 residents, 54.5% of whom rent their homes, it presents a significant rental market. The median income here is $66,592, while the median home value reaches $398,492, indicating a middle-class community with a mix of homeowners and renters.

The voucher economics in ZIP 89431 are particularly noteworthy. The Fair Market Rent (FMR) for the area for fiscal year 2024 is set at $1,430, which is notably lower than the market rate, as indicated by the ZORI (Zillow Observed Rent Index) of $1,604. This difference suggests that landlords who accept Section 8 vouchers could see a slight reduction in rental income compared to the market average. However, the stability provided by government-backed vouchers might offset this with guaranteed payments and reduced vacancy rates.

Evaluating the data signature of ZIP 89431, it reads as stable. The relatively high median home value and median income suggest a financially secure local economy. Additionally, the substantial portion of residents who rent their homes indicates a steady demand for rental properties, which can be capitalized upon through Section 8 participation. Landlords and small-portfolio investors should consider these factors when deciding whether to participate in the Section 8 program in this ZIP code.

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.