Environmental

What is the significance of a floodplain map (FIRM) in Nevada real estate?

AFlood Insurance Rate Maps only apply to coastal states

BFEMA Flood Insurance Rate Maps (FIRMs) identify flood hazard areas in Nevada; properties in Special Flood Hazard Areas (SFHAs) require flood insurance for federally backed mortgages✓ Correct

CFIRMs are used for Nevada water rights determinations

DFIRMs apply only to properties near Lake Mead

Explanation

FEMA FIRMs designate Special Flood Hazard Areas (SFHAs) — zones with a 1% annual chance of flooding. Properties in SFHAs with federally backed mortgages require flood insurance.

People Also Study

Key Terms to Know

Zoning

Local government regulations that control land use by dividing areas into zones specifying permitted uses, building sizes, and densities.

Deed of Trust

A security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.

Capitalization Rate (Cap Rate)

A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.

Gross Rent Multiplier (GRM)

A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.