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 |
|---|---|---|---|---|
| 1BR | $1,350 | $167,390 | 0.81% | C |
| 2BR | $1,690 | $230,033 | 0.73% | D |
| 3BR | $2,290 | $396,358 | 0.58% | F |
| 4BR | $2,660 | $489,219 | 0.54% | F |
| 5BR | $3,086 | $549,373 | 0.56% | F |
U.S. Census Bureau data (2024)
The HUD Fair Market Rent (FMR) for ZIP code 89512 in Reno, Nevada, for fiscal year 2024 is set at $1,430. This figure closely aligns with the Zillow Observed Rental Index (ZORI), which stands at $1,434, indicating that voucher tenants will generally cashflow at the FMR level without significant strain. However, landlords should be cautious as the slight difference might necessitate premium units to ensure positive cashflow.
To further analyze the investment landscape, consider the median home value in the area, which is $357,676. Using this figure, we can calculate the rent-to-price ratio. For a property valued at $357,676, the annual rent would be approximately $17,208 ($1,434 per month), leading to a rent-to-price ratio of about 0.0048 or 0.48%. This ratio suggests that the rental income is relatively low compared to the property's value, but it also implies a strong potential for appreciation as property values rise.
In terms of the days on market (DOM) and price-cut share, both metrics are noted as N/A and 0.2%, respectively. These figures indicate that there is little need for price adjustments when selling homes in the area, suggesting a stable real estate market. The low price-cut share supports the notion that the housing market is robust, and sellers can maintain their asking prices without significant concessions.
The strongest investor angle in ZIP 89512 is stability. Given the close alignment between the HUD FMR and the market rent, along with the minimal need for price cuts when selling properties, investors can expect consistent performance and reliable returns over time.
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.