Location: Douglas County, NV | Metro: Douglas 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 | $1,040 |
| 1 Bedroom | $1,170 |
| 2 Bedrooms | $1,490 |
| 3 Bedrooms | $2,060 |
| 4 Bedrooms | $2,490 |
| 5 Bedrooms | $2,888 |
| 6 Bedrooms | $3,235 |
| 7 Bedrooms | $3,494 |
| 8 Bedrooms | $3,669 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,490 | $415,468 | 0.36% | F |
| 3BR | $2,060 | $555,293 | 0.37% | F |
| 4BR | $2,490 | $927,760 | 0.27% | F |
| 5BR | $2,888 | $1,386,487 | 0.21% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 89460, Gardnerville, NV, reveals a challenging yet manageable rental environment. The Fair Market Rent (FMR) set by the U.S. Department of Housing and Urban Development (HUD) for the Douglas County metro area in fiscal year 2026 is $1,470. In contrast, the average market rent, according to Census ACS data, stands at $1,550. This means that voucher tenants will generally cashflow at the FMR level, but landlords may experience marginal cash flow if they need to offer market rents to attract tenants.
To derive the rent-to-price ratio, we consider the median home value in ZIP 89460, which is $589,567. At an average market rent of $1,550, the annual rent amounts to $18,600. Thus, the rent-to-price ratio is approximately 3.16%, calculated by dividing the annual rent by the median home value. This ratio indicates that rental income alone would cover about 3.16% of the median home's value annually, suggesting a relatively low return on investment for those considering purchasing properties in this area.
The dynamics between renting and buying in ZIP 89460 further highlight the challenges faced by investors. The median Days on Market (DOM) is N/A, and the share of listings that require a price cut is 0.2%. These figures suggest a stable housing market with minimal competition among sellers. However, the low price-cut share also implies that there is little pressure on sellers to reduce their asking prices, which could affect the affordability of new investments for landlords.
In conclusion, while the cash flow potential for Section 8 investors in ZIP 89460 is somewhat limited due to the close alignment of HUD FMR and market rents, the stability and low competition in the local housing market make it an attractive option for investors seeking long-term, consistent returns rather than rapid appreciation. Stability is the strongest angle for investors in this market.
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.