Section 8 Fair Market Rent (FMR) for ZIP 70056 - 2027

Investment Score for ZIP 70056

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,100
1 Bedroom	$1,230
2 Bedrooms	$1,480
3 Bedrooms	$1,900
4 Bedrooms	$2,230
5 Bedrooms	$2,587
6 Bedrooms	$2,897
7 Bedrooms	$3,129
8 Bedrooms	$3,285

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,480	$148,242	1%	C
3BR	$1,900	$232,865	0.82%	C
4BR	$2,230	$291,241	0.77%	D
5BR	$2,587	$388,401	0.67%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 70056 (Gretna, LA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 70056 is set by HUD for 2026, with the following rates: - 0BR: $970 - 1BR: $1120 - 2BR: $1340 (which is 27.2% of the median household income) - 3BR: $1710 - 4BR: $2000 To understand how these FMRs compare to actual rents, we need to consider the price-to-FMR ratio, which is reported to be 9.3x for a 2BR unit. This means that the actual median rent for a 2BR unit is approximately $12,462 per year ($1340 * 9.3), or about $1,038.50 per month. Given that the FMR for a 2BR unit is $1340, landlords who want to participate in the Section 8 program must ensure their rents do not exceed this amount. However, since the actual median rent is lower at $1,038.50, it suggests that many units in Gretna are already priced below the FMR threshold. This can create a challenge for voucher holders, as they may find themselves in a situation where the voucher amount exceeds the actual market rent, leading to potential difficulties in finding landlords willing to accept the vouchers. #### Affordability & Renter Profile ZIP code 70056 has a population of 40,348, with 42.9% being renters. The median household income is $59,027, indicating that the majority of residents have a moderate income level. Given that the FMR for a 2BR unit is $1340, which represents 27.2% of the median income, it suggests that housing costs are relatively affordable for most residents. However, the occupancy rate of 93.4% indicates a tight rental market, with very few vacant units available. This high occupancy rate could lead to increased competition among renters, making it difficult for those with Section 8 vouchers to secure housing if landlords are hesitant to accept them due to the higher FMR compared to actual market rates. #### Investor Angle From an investor perspective, the key question is whether properties can generate positive cash flow at the FMR levels. The Zillow median price for a 2BR property is $149,762. Using typical mortgage rates and assuming a 20% down payment, the monthly mortgage payment would be around $700-$800, depending on the interest rate. If we consider the FMR of $1340 for a 2BR unit, the potential gross rental income would be $1340 per month. Subtracting the mortgage payment and other expenses such as property taxes, insurance, maintenance, and management fees, the net cash flow would likely be positive. For instance, if the total monthly expenses were $900, the net cash flow would be $440 per month. This positive cash flow makes the ZIP code attractive for investors looking to participate in the Section 8 program. The investment grade for this ZIP code can be considered moderate to good, given the tight rental market and the potential for positive cash flow. However, investors should be aware of the challenges associated with finding tenants who can afford the FMR and landlords willing to accept Section 8 vouchers. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio for larger units, investors might want to focus on acquiring smaller units like 0BR and 1BR apartments. These units have FMRs of $970 and $1120 respectively, which are closer to the actual market rents. This would increase the likelihood of finding tenants who can afford the rent and landlords willing to accept vouchers. 2. **Negotiate with Landlords**: Since the actual median rent is lower than the FMR, investors should consider negotiating with landlords to keep rents slightly below the FMR. This would make it easier for voucher holders to find suitable housing, potentially increasing the pool of eligible tenants and reducing vacancy rates. 3. **Consider Property Management Services**: Given the complexities of managing Section 8 properties, investors might benefit from hiring professional property management services. These services can help navigate the administrative requirements and ensure compliance with HUD regulations, thereby minimizing risks and maximizing returns. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 70056 is to **Buy**. The combination of a tight rental market, moderate median income, and positive cash flow potential makes this ZIP code a viable investment opportunity. However, investors should be prepared to manage the challenges associated with the Section 8 program, including negotiating with landlords and ensuring compliance with HUD regulations.

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.