Section 8 Fair Market Rent (FMR) for ZIP 70072 - 2027

Investment Score for ZIP 70072

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	$1,070
1 Bedroom	$1,200
2 Bedrooms	$1,440
3 Bedrooms	$1,850
4 Bedrooms	$2,170
5 Bedrooms	$2,517
6 Bedrooms	$2,819
7 Bedrooms	$3,045
8 Bedrooms	$3,197

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	$1,440	$165,111	0.87%	C
3BR	$1,850	$225,167	0.82%	C
4BR	$2,170	$277,862	0.78%	D
5BR	$2,517	$376,607	0.67%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 70072 (Marrero, LA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 70072, as per the 2026 data, is set at $1340 for a two-bedroom unit. This represents 29.3% of the median household income of $54,885. However, the actual rental market prices can be significantly higher. The Zillow median price for a two-bedroom unit in this area is $161,511, which translates into a monthly rent that is approximately 10 times the FMR. This indicates that the actual rental prices are much higher than the FMR, creating a challenging environment for Section 8 voucher holders. Given the high price-to-FMR ratio, landlords who accept Section 8 vouchers may face difficulties finding tenants willing to pay the remaining portion of the rent beyond what the voucher covers. For example, if a landlord charges $1340 for a two-bedroom unit, the tenant would need to contribute the difference between the FMR and the actual rent, which could be substantial. This could limit the number of potential tenants who can afford to live in these units despite having a voucher. #### Affordability & Renter Profile ZIP code 70072 has a population of 55,693, with 24.6% being renters. The occupancy rate stands at 92.1%, suggesting a relatively tight rental market. Given the median household income of $54,885, it is clear that many residents are facing affordability challenges. The high price-to-FMR ratio of 10.0x means that even for a two-bedroom unit, the actual rent could be around $13,400 annually, which is a significant portion of the median income. This tight market likely benefits those who can afford higher rents but poses a challenge for lower-income families relying on Section 8 vouchers. The 24.6% renter population percentage implies that there is a notable segment of the community that is renting, but the high cost of living relative to income suggests that this market is not particularly affordable for all renters. #### Investor Angle From an investor perspective, the ZIP code 70072 presents both opportunities and challenges. The high price-to-FMR ratio means that properties rented at the FMR level will likely generate positive cash flow, especially when compared to the actual market rates. For instance, a two-bedroom unit rented at $1340 would be below the market rate, making it attractive for investors looking to capitalize on the demand for affordable housing. However, the investment grade of properties in this area depends heavily on the ability to attract and retain tenants who can afford the remaining portion of the rent. If the investor can secure a steady stream of tenants who are willing and able to cover the additional costs, then the investment could be considered solid. Otherwise, the risk of vacancy increases, which could negatively impact cash flow. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should consider focusing on smaller units such as one-bedroom or studio apartments. These units typically have lower FMRs, making them more affordable for voucher holders. For example, the FMR for a one-bedroom unit is $1120, which is still a fraction of the median income, allowing for better affordability and potentially higher occupancy rates. 2. **Location Matters**: Within ZIP code 70072, certain neighborhoods may be more desirable and thus command higher rents. Investors should conduct a thorough neighborhood analysis to identify areas where the rental demand is highest and the competition is lower. This could involve looking at proximity to amenities, schools, and employment centers, which can influence tenant preferences and willingness to pay higher rents. 3. **Renters' Assistance Programs**: Consider partnering with local organizations that offer financial assistance to renters. This can help mitigate the risk of vacancy by ensuring that tenants can cover the additional costs beyond what their vouchers provide. Additionally, offering flexible payment plans or rent subsidies for the first few months can make the property more attractive to voucher holders. #### Bottom Line For Section 8-focused investors, ZIP code 70072 offers a mixed landscape. While the high price-to-FMR ratio suggests that properties rented at the FMR level could generate positive cash flow, the tight rental market and the limited number of voucher holders who can afford the remaining rent make this a risky investment. Therefore, the recommendation is to **Hold** on to existing investments in this area, but **Skip** new acquisitions unless you can focus on smaller units or secure partnerships with local organizations to support tenant affordability. In summary, while there are opportunities for positive cash flow, the overall market dynamics and affordability challenges suggest a cautious approach for new investments.

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.