Location: New Orleans-Metairie, LA | Metro: New Orleans-Metairie, LA 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 | $1,070 |
| 1 Bedroom | $1,200 |
| 2 Bedrooms | $1,440 |
| 3 Bedrooms | $1,850 |
| 4 Bedrooms | $2,170 |
| 5 Bedrooms | $2,517 |
| 6 Bedrooms | $2,819 |
| 7 Bedrooms | $3,045 |
| 8 Bedrooms | $3,197 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,440 | $314,798 | 0.46% | F |
| 3BR | $1,850 | $410,279 | 0.45% | F |
| 4BR | $2,170 | $751,950 | 0.29% | F |
| 5BR | $2,517 | $1,240,731 | 0.2% | F |
U.S. Census Bureau data (2024)
The classification of ZIP 70005 (Metairie, LA) on the yield and stability axes reveals a nuanced market scenario. On the yield axis, the Fair Market Rent (FMR) for ZIP 70005 in fiscal year 2024 is set at $1,400, which is notably lower than the market rent of $1,922. This suggests a potential upside for landlords who can secure tenants through the Section 8 program, as they could potentially command higher rents from non-subsidized tenants.
However, the median home value in ZIP 70005 stands at $415,441, indicating that it is not a low-cost area where flipping properties might be financially viable. The higher property values suggest that any investment would come with a significant initial outlay, reducing the likelihood of quick returns typical in a high-yield/low-stability market.
On the stability axis, ZIP 70005 shows a moderate level of stability. With 34.9% of residents being renters, there is a substantial demand for rental properties. However, the Days on Market (DOM) figure of 54 days implies a relatively slow turnover rate for rentals, which could indicate challenges in finding tenants quickly or maintaining occupancy rates.
The average household income in ZIP 70005 is $89,194, which provides some assurance regarding the financial stability of potential tenants. This income level supports the ability of residents to pay market rents, even if they are not directly subsidized by the Section 8 program.
Based on these figures, ZIP 70005 does not fit neatly into either a high-yield/low-stability flip-style market or a steady-cashflow zone. Instead, it represents a middle-ground scenario where the potential for higher yields exists, but it must be balanced against the slower market dynamics and higher property costs. Landlords and small-portfolio investors should expect a market that offers reasonable cash flow opportunities, but requires careful management to maintain stability.
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.