Location: New Orleans-Metairie, LA | Metro: New Orleans-Metairie, LA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,080 |
| 1 Bedroom | $1,180 |
| 2 Bedrooms | $1,460 |
| 3 Bedrooms | $1,920 |
| 4 Bedrooms | $2,200 |
| 5 Bedrooms | $2,552 |
| 6 Bedrooms | $2,858 |
| 7 Bedrooms | $3,087 |
| 8 Bedrooms | $3,241 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 70051 reveals a complex rental market scenario. To understand the implications, let's first annualize the figures provided. The Fair Market Rent (FMR) for a 2-bedroom apartment in ZIP 70051 for fiscal year 2024 is set at $1070 per month, translating to an annual figure of $12,840. Meanwhile, the market rent, based on Census ACS data, stands at $1,078 per month, equating to an annual rent of $12,936.
The median home value in ZIP 70051 is currently not available. However, we can still derive a rough picture of the gross yield for both the FMR and market rent scenarios. The gross yield is calculated by dividing the annual rental income by the property value. Since the median home value is not available, we cannot calculate a precise gross yield. But we can compare the two annual rental incomes directly to gauge the potential rental performance.
The FMR of $12,840 annually is slightly lower than the market rent of $12,936 annually. This suggests that properties rented under Section 8 in ZIP 70051 might generate a marginally lower gross yield compared to those rented at market rates. Given the renter density of 12.1%, it's important to note that only a small portion of homeowners in this area are likely to be renting out their properties, which could indicate a competitive rental market.
The Days on Market (DOM) figure is also not available, making it difficult to assess how quickly properties are rented. However, the slight difference between the FMR and market rent suggests that the rental income from a Section 8 property would be close to market rates, but not quite as high. This makes the market rent scenario more realistic for investors looking to maximize their gross yield.
Landlords and small-portfolio investors should consider these figures when evaluating the potential returns of properties in ZIP 70051. While Section 8 can provide stable rental income, the slightly higher market rent offers a better gross yield. Investors must weigh the benefits of guaranteed income against the potential for higher yields when deciding whether to participate in the Section 8 program or aim for market-rate tenants.
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.