Location: Reno, 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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,690 | $353,320 | 0.48% | F |
| 3BR | $2,290 | $434,611 | 0.53% | F |
| 4BR | $2,660 | $492,359 | 0.54% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 89433, located in Sun Valley, Nevada, reveals a market that offers a balance between yield and stability. With a Fair Market Rent (FMR) of $1,430 for fiscal year 2024, this area presents a higher rental income potential compared to the local market rate of $1,266. This difference suggests that properties in this ZIP can command rents above the average, thereby enhancing the yield for landlords and small-portfolio investors.
However, the stability aspect of the market must also be considered. The area has a significant portion of renters at 27.5%, which is a positive indicator for rental demand. Despite this, the lack of data on the number of days on market (DOM) could imply some uncertainty regarding how quickly units might rent out. Additionally, the median household income of $75,984 provides a reasonable level of financial security for tenants, reducing the risk of default.
The home value in ZIP 89433 stands at $435,304, which is relatively high but aligns with the income levels, suggesting that there is a sufficient economic base to support rental prices. This combination of factors indicates that while the area offers a decent yield, it is not characterized as a high-risk, low-stability "flip-style" market. Instead, it leans towards being a steady-cashflow zone where investors can expect reliable returns without excessive volatility.
To summarize, ZIP 89433 is best classified as a market offering moderate yield opportunities due to the higher FMR compared to the local market rate, coupled with a stable tenant base indicated by the median income. It is not a high-stability market due to the limited data on rental turnover speed, but it is certainly not a low-stability environment either. Investors should find a balance between the potential for higher rental yields and the need for stable cash flows when considering 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.