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 | $1,060 |
| 1 Bedroom | $1,190 |
| 2 Bedrooms | $1,430 |
| 3 Bedrooms | $1,840 |
| 4 Bedrooms | $2,160 |
| 5 Bedrooms | $2,506 |
| 6 Bedrooms | $2,807 |
| 7 Bedrooms | $3,032 |
| 8 Bedrooms | $3,184 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,190 | $248,695 | 0.48% | F |
| 2BR | $1,430 | $376,877 | 0.38% | F |
U.S. Census Bureau data (2024)
The analysis for landlords and small-portfolio investors in ZIP code 70112, located in New Orleans, LA, reveals a significant disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR stands at $1560, while the market rent, as indicated by the Zillow Rent Index (ZORI), is $1787. This creates a gap of $227, which translates to approximately 14.5% below the market rate.
Given that the FMR is lower than the market rent, landlords accepting housing vouchers in ZIP 70112 must understand the implications of renting below open-market rates. The cost of housing voucher tenants below market rates can impact the overall yield of rental properties. In New Orleans, where 90.7% of residents are renters, and the median income is $19,395, landlords might face challenges in achieving optimal yields. However, the stability provided by voucher tenants can be a strategic advantage, ensuring consistent cash flow despite the lower rents.
Moreover, the median home value in New Orleans is $316,288, reflecting the broader real estate landscape. While this figure pertains to homeownership, it underscores the economic realities faced by many renters who rely on government assistance to secure affordable housing. Landlords in ZIP 70112 should consider these factors when deciding whether to participate in the Section 8 program. Accepting voucher tenants can lead to a more predictable income stream but comes with the trade-off of reduced rental income compared to the open market.
To summarize, the gap between FMR and market rent in ZIP 70112 is $227, or 14.5%. This gap means landlords will earn less per unit than they would in the open market, but it also ensures a steady and reliable source of income, particularly valuable in an area where the majority of residents are renters and median incomes are relatively low.
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.