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 | $1,510 |
| 1 Bedroom | $1,690 |
| 2 Bedrooms | $2,040 |
| 3 Bedrooms | $2,620 |
| 4 Bedrooms | $3,080 |
| 5 Bedrooms | $3,573 |
| 6 Bedrooms | $4,002 |
| 7 Bedrooms | $4,322 |
| 8 Bedrooms | $4,538 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,620 | $319,082 | 0.82% | C |
| 4BR | $3,080 | $438,074 | 0.7% | D |
| 5BR | $3,573 | $516,911 | 0.69% | D |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 70037, located in the New Orleans-Metairie, LA HUD Metro FMR Area, reveals a favorable rental environment. The HUD Fair Market Rent (FMR) for ZIP 70037 is set at $1800 for fiscal year 2024. In comparison, the market rent, as indicated by ZORI (Zillow's Observed Rental Index), stands at $1,533. This means that voucher tenants can generate positive cash flow at the HUD FMR rate, indicating that properties in this area are undervalued relative to the subsidy.
To further understand the investment potential, consider the median home value of $332,442. The rent-to-price ratio, calculated using the HUD FMR, is approximately 0.6%, suggesting that rental income represents a significant portion of the property's value. This makes the area attractive for investors seeking steady rental income without relying on capital appreciation alone.
The dynamics between renting and buying are also noteworthy. With a median DOM (Days on Market) of N/A and a price-cut share of 0.2%, it is evident that the market is stable and does not frequently require sellers to lower their asking prices. This stability can be beneficial for both landlords and small-portfolio investors, as it reduces the risk of sudden drops in property values.
In conclusion, the strongest investor angle in ZIP 70037 is cashflow. The disparity between the HUD FMR and the market rent provides a substantial opportunity for positive cash flow, making it an excellent choice for those prioritizing rental income over other investment metrics.
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.