Section 8 Fair Market Rent (FMR) for ZIP 70065 - 2027

Investment Score for ZIP 70065

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	$1,000
1 Bedroom	$1,120
2 Bedrooms	$1,350
3 Bedrooms	$1,730
4 Bedrooms	$2,040
5 Bedrooms	$2,366
6 Bedrooms	$2,650
7 Bedrooms	$2,862
8 Bedrooms	$3,005

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	$1,350	$148,830	0.91%	C
3BR	$1,730	$263,263	0.66%	D
4BR	$2,040	$370,593	0.55%	F
5BR	$2,366	$561,068	0.42%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 70065 (Kenner, LA) #### Section 8 Voucher Dynamics In ZIP code 70065, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $1340 per month for the year 2026. This figure represents 23.9% of the median household income of $67,285. However, the actual rent in the area is significantly higher, with the Zillow median price for a two-bedroom property being $154,905. The price-to-FMR ratio is 9.6x, indicating that the actual rental costs are much higher than the FMR. For Section 8 voucher holders, this means that they face significant constraints in finding affordable housing within their budget. The FMR is designed to ensure that low-income families can afford decent housing, but in Kenner, the gap between FMR and actual rents is substantial, making it challenging for voucher holders to find suitable homes. #### Affordability & Renter Profile The population of ZIP 70065 is 48,936, with 34.0% of residents being renters. This indicates a moderate rental market, where a significant portion of the population relies on rental properties. Given the occupancy rate of 91.1%, the market is relatively tight, suggesting that there is strong demand for rental units. The high occupancy rate also implies that there might be limited availability of units, which could drive up rental prices further. The median household income of $67,285 suggests that while some residents can afford higher rents, others, particularly those relying on Section 8 vouchers, will struggle to find affordable housing options. #### Investor Angle For investors focusing on Section 8 properties, the ZIP code 70065 presents both opportunities and challenges. The FMRs for different bedroom types are as follows: - 0BR: $970 - 1BR: $1120 - 2BR: $1340 - 3BR: $1710 - 4BR: $2000 Given the price-to-FMR ratio of 9.6x, it is clear that the actual market rents are well above the FMR. This means that landlords who participate in the Section 8 program will likely experience lower cash flows compared to those who rent at market rates. However, the Section 8 program provides a stable and reliable source of income, as the government guarantees payment of the rent. The investment grade for Section 8 properties in this ZIP code would be considered moderate due to the tight rental market and the high actual rents compared to the FMR. Investors should carefully consider the trade-offs between the stability of Section 8 payments and the potential for higher returns by renting at market rates. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, smaller units such as 0BR and 1BR apartments are more likely to be rented by Section 8 voucher holders. These units have FMRs of $970 and $1120, respectively, which are closer to the actual rental costs in the area. Investing in properties that offer these smaller unit sizes could provide better cash flow and higher occupancy rates. 2. **Consider Location and Amenities**: In a tight rental market like Kenner, amenities and location play a crucial role in attracting tenants. Properties located in desirable areas with good access to public transportation, schools, and shopping centers are more likely to be rented by voucher holders. Additionally, offering basic amenities such as laundry facilities, parking, and security features can make a property more attractive to renters. 3. **Evaluate Market Trends**: The high occupancy rate of 91.1% suggests that the rental market in Kenner is robust. However, investors should monitor trends in the local economy and housing market. If the occupancy rate starts to decline or if new rental developments enter the market, it could affect the demand for Section 8 properties. Regularly checking the Zillow median prices and comparing them to the FMRs can help investors stay informed about the changing dynamics of the rental market. #### Bottom Line For Section 8-focused investors, the ZIP code 70065 presents a mixed picture. While there is a strong demand for rental units, the high actual rents compared to the FMR suggest that cash flow might be lower than in other markets. However, the stability of Section 8 payments and the tight rental market make it a viable option for investors seeking consistent income. Based on the data provided, the recommendation for investors is to **Hold** properties in this ZIP code, particularly those with smaller unit sizes and desirable locations. This strategy can help maximize occupancy rates and ensure steady cash flow, even if it means accepting lower rents than the market average. --- This analysis provides a detailed overview of the rental market dynamics in ZIP code 70065, focusing specifically on the implications for Section 8 voucher holders and investors. The insights are based solely on the provided data, ensuring accuracy and relevance.

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.