Location: New Orleans-Metairie, LA | Metro: New Orleans-Metairie, LA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,030 |
| 1 Bedroom | $1,150 |
| 2 Bedrooms | $1,390 |
| 3 Bedrooms | $1,780 |
| 4 Bedrooms | $2,100 |
| 5 Bedrooms | $2,436 |
| 6 Bedrooms | $2,728 |
| 7 Bedrooms | $2,946 |
| 8 Bedrooms | $3,093 |
U.S. Census Bureau data (2024)
The classification of ZIP code 70002 in Metairie, Louisiana, hinges on analyzing its rental market yield and stability. The Fair Market Rent (FMR) for ZIP 70002 in fiscal year 2024 is set at $1,260. This figure is notably lower than the market rent of $1,426, indicating a potential opportunity for landlords who can secure Section 8 tenants. However, the median home value in this area stands at $346,910, which is significantly higher.
Stability factors such as the percentage of renters and median household income also play a crucial role. In ZIP 70002, approximately 49.3% of residents are renters, suggesting a moderate demand for rental properties. The median household income is $65,436, which provides some insight into the economic base supporting the rental market. Unfortunately, the data does not provide an average number of days on the market (DOM), which would be useful in assessing how quickly rental units turn over.
Based on these figures, ZIP 70002 leans towards a steady-cashflow zone rather than a high-yield/low-stability market. The gap between the FMR and market rent suggests that landlords might still attract non-Section 8 tenants willing to pay more, thereby balancing the lower yields from Section 8 rents. With nearly half of the population renting and a decent median income, the stability of the rental market appears reasonable, though not exceptional.
To conclude, while the yield from Section 8 rents is relatively low compared to market rates, the combination of a significant portion of renters and a solid median income makes ZIP 70002 a suitable option for investors seeking consistent cash flow without the risks associated with highly volatile markets.
Data Sources: FMR data from HUD (2027). 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.