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 | $1,470 |
| 1 Bedroom | $1,640 |
| 2 Bedrooms | $1,980 |
| 3 Bedrooms | $2,540 |
| 4 Bedrooms | $2,990 |
| 5 Bedrooms | $3,468 |
| 6 Bedrooms | $3,884 |
| 7 Bedrooms | $4,195 |
| 8 Bedrooms | $4,405 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,640 | $267,781 | 0.61% | D |
| 2BR | $1,980 | $401,432 | 0.49% | F |
| 3BR | $2,540 | $594,084 | 0.43% | F |
| 4BR | $2,990 | $674,705 | 0.44% | F |
| 5BR | $3,468 | $855,197 | 0.41% | F |
U.S. Census Bureau data (2024)
The Section 8 program in ZIP code 70115, located in New Orleans, LA, presents a unique opportunity for landlords and small-portfolio investors due to the disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for the area is set at $1,750 for fiscal year 2024, while the market rent, as measured by the Zillow Observed Rent Index (ZORI), stands at $1,656. This means that the FMR is $94 higher than the market rent, or approximately 5.6% above it.
This gap makes the area a yield play for voucher tenants. Landlords can secure rental income that is consistently higher than the prevailing market rate, without the risk of vacancy that often accompanies market-rate rentals. With 45.7% of residents being renters and a median income of $90,182, there is a significant portion of the population who would benefit from the housing vouchers provided by the Section 8 program. Additionally, the median home value in the area is $520,314, indicating a diverse housing market where affordable rental options are crucial.
The higher FMR ensures that landlords receive a steady income that is slightly above what they might expect from the open market. This can be particularly advantageous in an area like New Orleans, which has faced economic challenges and recovery periods. The Section 8 program guarantees timely payments through Housing Authorities, thus providing a reliable stream of income that is not subject to the volatility of individual tenant payment histories.
However, it's important to note that accepting Section 8 tenants does come with some administrative costs and requirements. Landlords must ensure their properties meet Housing Quality Standards (HQS) and may need to make improvements to qualify. Despite these costs, the gap between FMR and market rent in ZIP 70115 makes it a favorable environment for landlords willing to participate in the program.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.