Location: Pershing County, NV | Metro: Humboldt County, NV
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 | $950 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,250 |
| 3 Bedrooms | $1,560 |
| 4 Bedrooms | $2,090 |
| 5 Bedrooms | $2,424 |
| 6 Bedrooms | $2,715 |
| 7 Bedrooms | $2,932 |
| 8 Bedrooms | $3,079 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,250 | $254,748 | 0.49% | F |
| 3BR | $1,560 | $374,838 | 0.42% | F |
| 4BR | $2,090 | $481,372 | 0.43% | F |
| 5BR | $2,424 | $530,023 | 0.46% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate picture for ZIP code 89445, located in Winnemucca, Nevada, can be analyzed using the Fair Market Rent (FMR) and market rent figures for a two-bedroom property. The annualized FMR for a two-bedroom unit in the area is set at $1,320, while the market rent stands at $990, based on Census ACS data.
To calculate the gross yield, we use the median home value of $351,254 as the denominator. With an annualized FMR of $1,320, the implied gross yield is approximately 0.376%, calculated as ($1,320 / $351,254) * 100%. In contrast, using the market rent figure of $990, the implied gross yield drops to about 0.282%, calculated similarly as ($990 / $351,254) * 100%.
The lower gross yield based on market rent reflects a more realistic scenario for most investors. Despite the higher FMR set by the government, the actual market conditions suggest that landlords may struggle to command rents at the FMR level. Given the renter density of 26.1%, it's evident that a significant portion of the population is homeowners, reducing the pool of potential renters. Additionally, the lack of data on days on market (DOM) indicates volatility or uncertainty in the local rental market, further supporting the use of market rent figures for a more accurate assessment.
In conclusion, while the Section 8 program offers a guaranteed income stream at the FMR rate, the actual gross yield of 0.376% is unlikely to materialize consistently in the open market. Landlords and small-portfolio investors should prepare for a gross yield closer to the market rent figure of 0.282%, which aligns better with current economic realities in ZIP 89445.
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.