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 | $1,610 |
| 1 Bedroom | $1,810 |
| 2 Bedrooms | $2,180 |
| 3 Bedrooms | $2,800 |
| 4 Bedrooms | $3,290 |
| 5 Bedrooms | $3,816 |
| 6 Bedrooms | $4,274 |
| 7 Bedrooms | $4,616 |
| 8 Bedrooms | $4,847 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,810 | $227,700 | 0.79% | D |
| 2BR | $2,180 | $338,376 | 0.64% | D |
| 3BR | $2,800 | $469,563 | 0.6% | F |
| 4BR | $3,290 | $656,357 | 0.5% | F |
| 5BR | $3,816 | $767,703 | 0.5% | F |
U.S. Census Bureau data (2024)
The ZIP code 70124 in New Orleans, LA, presents an interesting scenario for both renters and landlords. The median household income in this area stands at $121,228, which is significantly higher than the national average. However, when it comes to housing costs, the median rent is $1,989 per month, known as the Zillow Rent Index (ZORI). This figure represents the market rate for renting a property in the area.
Comparatively, the Fair Market Rent (FMR) set by the U.S. Department of Housing and Urban Development (HUD) for zip code 70124 is $1,890 for fiscal year 2024. This is the standard amount that housing voucher payments will cover. It's worth noting that the FMR is slightly lower than the market rate, indicating a potential gap between what renters might be willing to pay and what they receive through their vouchers.
With 22.4% of the 21,778 population being renters, the competition among landlords can be fierce. The affordability gap suggests that while some households can comfortably pay the market rate of $1,989, others might rely heavily on housing vouchers to make ends meet. For landlords, this means there are two primary markets: those who can afford to pay the full market rate and those who depend on vouchers.
The takeaway for landlords considering voucher versus cash-pay strategies is clear. While accepting vouchers can provide a steady stream of rental income, it may also limit the ability to charge above the FMR. On the other hand, focusing on cash-paying tenants could yield higher monthly rents but might increase vacancy rates due to the limited number of households capable of paying the market rate without assistance. Landlords should carefully consider the balance between these two strategies based on the local economic conditions and tenant preferences.
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.