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 | $1,270 |
| 1 Bedroom | $1,450 |
| 2 Bedrooms | $1,820 |
| 3 Bedrooms | $2,430 |
| 4 Bedrooms | $2,820 |
| 5 Bedrooms | $3,271 |
| 6 Bedrooms | $3,664 |
| 7 Bedrooms | $3,957 |
| 8 Bedrooms | $4,155 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,450 | $227,732 | 0.64% | D |
| 2BR | $1,820 | $477,898 | 0.38% | F |
| 3BR | $2,430 | $692,707 | 0.35% | F |
| 4BR | $2,820 | $869,770 | 0.32% | F |
| 5BR | $3,271 | $1,064,398 | 0.31% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 89509, located in Reno, Nevada, within Washoe County, can be straightforward if you understand the components involved. For fiscal year 2024, the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code is $1570. This figure is crucial because it sets the maximum amount that a landlord will receive from the government under the Section 8 program.
In comparison, the local market rent for a similar two-bedroom unit, as measured by ZORI (Zillow Observed Rent Index), is $1712. This indicates that the market rent exceeds the SAFMR, creating an immediate gap for landlords who choose to participate in the Section 8 program.
A landlord's actual reimbursement under a Section 8 voucher includes several elements:
To illustrate, if a tenant's income is such that they contribute $300 towards the rent, and assuming a utility allowance of $250, the total reimbursement would be $300 (tenant contribution) + $250 (utility allowance) + $1570 (government contribution) = $2120. However, since the SAFMR caps the government's contribution, the reimbursement would still only be up to $1570.
This means that the actual reimbursement for a landlord participating in the Section 8 program in ZIP 89509 would be $1570, regardless of the tenant's contribution and utility allowances. Given that the local market rent is $1712, there is a reimbursement gap of $142 per month for a two-bedroom unit. Landlords must decide whether the benefits of having a guaranteed renter with government support outweigh this economic shortfall.
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.