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 | $1,230 |
| 1 Bedroom | $1,380 |
| 2 Bedrooms | $1,660 |
| 3 Bedrooms | $2,130 |
| 4 Bedrooms | $2,500 |
| 5 Bedrooms | $2,900 |
| 6 Bedrooms | $3,248 |
| 7 Bedrooms | $3,508 |
| 8 Bedrooms | $3,683 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,380 | $234,028 | 0.59% | F |
| 2BR | $1,660 | $277,689 | 0.6% | F |
| 3BR | $2,130 | $372,972 | 0.57% | F |
| 4BR | $2,500 | $482,334 | 0.52% | F |
| 5BR | $2,900 | $648,588 | 0.45% | F |
U.S. Census Bureau data (2024)
The ZIP code 70118 in New Orleans, LA, presents an interesting scenario for both renters and landlords. The median income in this area stands at $63,750, while the market rate for rent, known as the Zillow Observed Rent Index (ZORI), is $1,778 per month. This suggests that a significant portion of residents may struggle to afford market-rate rents. For context, a household earning the median income would spend approximately $1,778 x 12 = $21,336 on annual rent, which represents roughly 33.5% of their total annual income. This is already a considerable expense.
However, the situation becomes even more challenging when considering the Fair Market Rent (FMR) set by the U.S. Department of Housing and Urban Development for the fiscal year 2024, which is $1,370. This is the standard amount that housing vouchers cover in the area. Therefore, a household relying solely on a housing voucher would find it difficult to secure a rental property at the market rate, as the difference between the ZORI ($1,778) and the FMR ($1,370) is substantial. The affordability gap means that landlords might face increased competition for tenants willing to pay the full market rate, especially if they do not accept vouchers.
In ZIP 70118, where 51.5% of the population are renters, the competition among landlords could be fierce. Accepting vouchers can provide a steady stream of tenants, but it also means accepting lower rent payments. On the other hand, focusing on cash-paying tenants can lead to higher immediate returns but risks vacancies in a market where many potential tenants cannot afford the ZORI.
Takeaway for Landlords: In ZIP 70118, landlords must weigh the benefits of accepting vouchers against the desire for higher cash flow. While vouchers ensure consistent occupancy, they also limit potential revenue compared to market rates. Given the high percentage of renters and the significant disparity between median income and market rent, landlords should consider a mixed strategy—balancing the acceptance of vouchers with a focus on securing tenants who can afford the ZORI. This approach will help mitigate the risk of vacancy while maximizing rental income.
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.