A look at Nevada 2021 tax credit rents

Rents in the private market surged in 2021; according to the ALN series for Las Vegas and the Johnson, Perkins and Griffin series for Reno, 4th quarter rents increased 21% and 13% respectively over 2020 4th quarter rents. Meanwhile, LIHTC rents increased an average 5% in Las Vegas and 8% in Reno (LIHTC rents are assigned maximum allowable rents through the U.S.  Department of Housing and Urban Development). Consequently, market rate rents and LIHTC rents diverged even further, increasing the “wedge” between the two rents. Las Vegas and Reno area LIHTC rents were found to be 32% and 36% lower than market rents, as compared to last year when Las Vegas and Reno comparisons with market rents showed LIHTC rents 22% and 33% lower respectively. Some other findings on LIHTC rents are below:

• Average 2021 Nevada LIHTC monthly rent was $955, close to $60 more than the average of $897 found in 2020 Taking Stock.
• Broken out by floor plan, one, two- and three-bedroom high rents in LIHTC properties ranged from 34% to 40% lower than market rate rents on average.
• When broken out by neighborhood, Las Vegas Metro LIHTC rent was $60 to $810 a month less than market rate rent.
• Reno/Sparks LIHTC rents broken out by neighborhood were from $420 to $618 a month lower than market rate rents.

Taking Stock 2021 will be available soon on the Low Income Housing Database landing page on the Nevada Housing Division website.