Location: New Orleans-Metairie, LA | Metro: New Orleans-Metairie, LA HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $880 |
| 1 Bedroom | $1,010 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,540 |
| 4 Bedrooms | $1,800 |
| 5 Bedrooms | $2,088 |
| 6 Bedrooms | $2,339 |
| 7 Bedrooms | $2,526 |
| 8 Bedrooms | $2,652 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,540 | $231,324 | 0.67% | D |
| 4BR | $1,800 | $354,739 | 0.51% | F |
U.S. Census Bureau data (2024)
The ZIP code 70087 presents an interesting landscape for both renters and landlords. The median income here stands at $73,406, which places significant constraints on rental affordability. At the market rate of $856 (as per Census ACS), a household would need to allocate a substantial portion of their income towards rent, making it challenging for many residents.
Comparatively, the Fair Market Rent (FMR) set at $1070 for fiscal year 2024, which is the standard voucher payment, exceeds the market rate significantly. This discrepancy highlights a notable affordability gap where the actual cost of renting is lower than what the government deems fair, suggesting that voucher holders might find it difficult to secure housing within their budget.
With 25.1% of the 7,314 population being renters, the competition among landlords could be intense, especially when considering the financial limitations of potential tenants. Landlords who rely solely on market-rate rents may find themselves with a smaller pool of prospective tenants compared to those who accept vouchers.
The takeaway for landlords is clear: accepting Section 8 vouchers can open up a broader tenant base and potentially reduce vacancy rates. However, the decision should weigh the benefits of guaranteed rental payments against the administrative complexity and scrutiny associated with participating in the voucher program. In ZIP 70087, the choice to accept vouchers could be a strategic advantage given the affordability challenges faced by many renters.
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.