Section 8 Fair Market Rent (FMR) for ZIP 89521 - 2027

Investment Score for ZIP 89521

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,740
1 Bedroom	$1,990
2 Bedrooms	$2,500
3 Bedrooms	$3,340
4 Bedrooms	$3,870
5 Bedrooms	$4,489
6 Bedrooms	$5,028
7 Bedrooms	$5,430
8 Bedrooms	$5,702

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,990	$339,675	0.59%	F
2BR	$2,500	$612,026	0.41%	F
3BR	$3,340	$656,869	0.51%	F
4BR	$3,870	$762,102	0.51%	F
5BR	$4,489	$920,568	0.49%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 89521 (Reno, NV) #### Section 8 Voucher Dynamics In ZIP code 89521, the Fair Market Rent (FMR) for a two-bedroom unit is set at $2,590 for the year 2026. This amount represents 24.4% of the median household income of $127,181, which is relatively affordable compared to the national average where housing costs often exceed 30% of income. However, it is important to understand how this FMR compares to actual rents in the area. The actual rent for a two-bedroom unit in ZIP 89521 is significantly higher, with Zillow reporting a median price of $590,995. This translates to a price-to-FMR ratio of 19.0x, indicating that the actual market rent far exceeds the FMR. For voucher holders, this means they would likely need to pay a substantial portion of their income towards rent, as the voucher covers only up to the FMR. Given the high actual rent prices, voucher holders might face significant challenges finding units that accept their vouchers without requiring additional payment. #### Affordability & Renter Profile ZIP 89521 has a population of 41,859, with 31.1% of residents being renters. The occupancy rate stands at 94.7%, suggesting a tight rental market with limited availability. The median household income of $127,181 indicates that the area is relatively affluent, which could explain the high rent prices. However, the fact that 31.1% of the population are renters suggests that there is a significant segment of the population that cannot afford to purchase homes, despite the overall affluence of the area. Given the high price-to-FMR ratio, it is clear that the market is tight and oversupplied with expensive units. This makes it difficult for low-income renters to find affordable housing, even with Section 8 vouchers. The high rent prices also indicate that the area is attractive to investors looking for strong returns, but these returns come at the cost of affordability for many residents. #### Investor Angle From an investor perspective, the ZIP code 89521 presents both opportunities and challenges. The high median home value of $590,995 suggests strong appreciation potential and high resale values. However, the cash flow for rental properties at the FMR level is likely to be negative due to the high actual rent prices. To illustrate, if an investor purchases a two-bedroom property for $590,995 and rents it out at the FMR of $2,590 per month, the annual rental income would be $31,080. Assuming a conservative mortgage rate of 4.5% and a 20% down payment, the monthly mortgage payment on a $590,995 property would be approximately $2,850. This already exceeds the FMR by $260 per month, making it challenging to achieve positive cash flow without charging above the FMR. Furthermore, the investment grade of the area is high due to its desirability and strong economic indicators. However, the tight rental market and high actual rent prices mean that investors must carefully consider their target audience and whether they can attract tenants willing to pay the FMR or above. #### Specific Actionable Insights 1. **Focus on Higher-Income Renters**: Given the high actual rent prices and the tight market, investors should consider targeting higher-income renters who can afford to pay above the FMR. This could involve developing or purchasing properties that cater to the needs of professionals and families who can afford the premium rents. 2. **Consider Short-Term Rentals**: With a high occupancy rate and a significant portion of the population being renters, short-term rentals such as vacation homes or Airbnb listings could provide better cash flow opportunities. These units typically command higher nightly rates and can be rented out at times when demand is highest, such as during tourist seasons. 3. **Develop Affordable Housing**: While the market is tight, there is still a significant need for affordable housing. Investors could consider developing or converting existing properties into affordable housing units that are specifically designed to meet the needs of Section 8 voucher holders. This could involve working with local government programs to secure subsidies or tax incentives that make such investments financially viable. #### Bottom Line For Section 8-focused investors, ZIP code 89521 presents a challenging environment due to the high actual rent prices and the tight market conditions. The recommendation for investors is to **skip** this ZIP code for traditional rental investments at the FMR level. Instead, investors should focus on either higher-income renters or short-term rental opportunities to ensure positive cash flow. Alternatively, they could explore affordable housing development projects that align with local government initiatives to address the housing shortage in the area.

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.