Section 8 Fair Market Rent (FMR) for ZIP 70040 - 2027
Location: New Orleans-Metairie, LA | Metro: New Orleans-Metairie, LA HUD Metro FMR Area
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $1,340 |
| 1 Bedroom | $1,500 |
| 2 Bedrooms | $1,810 |
| 3 Bedrooms | $2,330 |
| 4 Bedrooms | $2,740 |
| 5 Bedrooms | $3,178 |
| 6 Bedrooms | $3,559 |
| 7 Bedrooms | $3,844 |
| 8 Bedrooms | $4,036 |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$83,649
A landlord considering purchasing a property in ZIP code 70040 for Section 8 investment must evaluate several factors to make an informed decision. Here is a structured approach to guide that decision:
- Does the Fair Market Rent (FMR) of $1620 cover the debt service on a $191,642 property?
- Yes: If the FMR of $1620 can indeed cover the debt service, then this is a positive indicator for Section 8 suitability. The next step is to assess the market rent.
- No: If the FMR cannot cover the debt service, then investing in this area for Section 8 purposes would likely be unprofitable. Look elsewhere for better opportunities.
- Is the market rent above, at, or below the FMR?
- Market Rent Above FMR: This suggests strong demand and potential for higher rents, but it also means fewer tenants might qualify for Section 8 vouchers. Consider the local economy and job market stability before making a decision.
- Market Rent At FMR: This indicates that the market rent aligns well with the FMR, making it feasible for Section 8 tenants to find housing. Proceed to evaluate the rental demand.
- Market Rent Below FMR: Lower market rents could mean a surplus of affordable housing options, potentially reducing the attractiveness of Section 8 properties in this area. Assess the local vacancy rates and competition.
- Are 2.0% of the population renters and the days on market (DOM) sufficient to indicate demand?
- Yes: With 2.0% of the population being renters and assuming a reasonable DOM, there is enough demand to consider investing in Section 8 properties. Ensure that the local Section 8 waitlist is not excessively long.
- No: If the percentage of renters is low and the DOM is high, indicating weak demand, then purchasing for Section 8 in this ZIP code would be risky. Seek areas with higher rental activity.
- It Depends: If the percentage of renters is marginal and the DOM is moderate, the decision hinges on other factors such as the local unemployment rate, housing availability, and tenant preferences. Research these elements to inform your final choice.
In summary, the decision to buy in ZIP 70040 for Section 8 investment should be based on whether the FMR covers debt service, the alignment between market rent and FMR, and the strength of rental demand. Use the provided data points to make a logical and informed decision.
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.