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 | $1,180 |
| 1 Bedroom | $1,320 |
| 2 Bedrooms | $1,590 |
| 3 Bedrooms | $2,040 |
| 4 Bedrooms | $2,400 |
| 5 Bedrooms | $2,784 |
| 6 Bedrooms | $3,118 |
| 7 Bedrooms | $3,367 |
| 8 Bedrooms | $3,535 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,590 | $165,098 | 0.96% | C |
| 3BR | $2,040 | $226,883 | 0.9% | C |
| 4BR | $2,400 | $261,808 | 0.92% | C |
| 5BR | $2,784 | $276,330 | 1.01% | B |
U.S. Census Bureau data (2024)
The ZIP code 70122 is located in the vibrant city of New Orleans, LA. This neighborhood is home to a diverse population of 35,253 residents, with 40.5% of them being renters. The median household income here stands at $49,455, indicating a middle-class community. The median home value in the area is $217,561, reflecting a mix of affordable and moderately priced housing options.
Moving into the realm of rental economics, the Fair Market Rent (FMR) for ZIP 70122 in fiscal year 2024 is set at $1,350. This figure contrasts with the market rent, which is currently estimated at $1,490 according to ZORI (Zillow Observed Rent Index). This gap suggests that there is a slight premium for market rents over those supported by government vouchers, implying opportunities for both hands-off voucher operators and hands-on value-add buyers.
For hands-off voucher operators, the alignment between the FMR and the actual rent levels provides a stable environment where the demand for subsidized housing is likely to be met. However, for value-add investors looking to capitalize on the slightly higher market rents, there are opportunities to improve properties and command rents above the FMR, thus potentially increasing profitability.
In conclusion, ZIP 70122 offers a balanced investment landscape for Section 8 investors. Whether one chooses to operate hands-off, relying on the consistent flow of voucher-supported tenants, or to take a hands-on approach, enhancing property values to capture the market premium, the neighborhood presents viable options. The demographic makeup and economic indicators point towards a steady demand for rental units, making it an attractive area for both types of investors.
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.