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 | $1,080 |
| 1 Bedroom | $1,210 |
| 2 Bedrooms | $1,460 |
| 3 Bedrooms | $1,870 |
| 4 Bedrooms | $2,200 |
| 5 Bedrooms | $2,552 |
| 6 Bedrooms | $2,858 |
| 7 Bedrooms | $3,087 |
| 8 Bedrooms | $3,241 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,460 | $167,924 | 0.87% | C |
| 3BR | $1,870 | $324,260 | 0.58% | F |
| 4BR | $2,200 | $431,590 | 0.51% | F |
| 5BR | $2,552 | $540,244 | 0.47% | F |
U.S. Census Bureau data (2024)
ZIP code 70006 is located in the eastern part of Metairie, Louisiana, and represents a diverse neighborhood with a total population of 16,170 residents. Within this community, 37.2% are renters, indicating a significant portion of the populace who prefer leasing over homeownership. The median household income in this area stands at $76,505, which places it above the national average, suggesting a relatively affluent demographic. However, the median home value of $341,761 is notably lower than what might be expected given the income levels, potentially due to the high percentage of renters.
The rent economics in ZIP 70006 are particularly interesting. According to the Fair Market Rent (FMR) set for fiscal year 2024, the benchmark for Section 8 vouchers is $1,340 per month. In contrast, the market rent, as measured by the Zillow Observed Rent Index (ZORI), is $1,738 per month. This gap between the FMR and market rent suggests that landlords who accept Section 8 vouchers could face a financial shortfall compared to those renting at market rates. However, the disparity also highlights the potential for landlords to attract tenants through voucher programs while still maintaining a reasonable profit margin.
Given these conditions, ZIP 70006 is better suited for hands-on value-add buyers rather than hands-off operators. Landlords who are willing to manage their properties actively and improve them can command higher rents and attract tenants beyond just those relying on Section 8 vouchers. By focusing on property management and enhancing the living conditions, investors can bridge the gap between the subsidized rent and market rates, making their investments more profitable. For those looking for a passive income stream, the lower FMR relative to market rent means they may need to adjust their expectations regarding returns, as purely hands-off operations might struggle to remain competitive or profitable in this environment.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.