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 | $1,200 |
| 1 Bedroom | $1,350 |
| 2 Bedrooms | $1,620 |
| 3 Bedrooms | $2,080 |
| 4 Bedrooms | $2,440 |
| 5 Bedrooms | $2,830 |
| 6 Bedrooms | $3,170 |
| 7 Bedrooms | $3,424 |
| 8 Bedrooms | $3,595 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,620 | $220,877 | 0.73% | D |
| 3BR | $2,080 | $312,552 | 0.67% | D |
| 4BR | $2,440 | $324,989 | 0.75% | D |
| 5BR | $2,830 | $321,826 | 0.88% | C |
U.S. Census Bureau data (2024)
The ZIP code 70125 is located in the vibrant city of New Orleans, LA. This neighborhood houses a total population of 17,821 residents, with a significant portion, 53.3%, being renters. The median household income in this area stands at $61,174, indicating a middle-class community. The median home value is $292,157, reflecting a moderate housing market where property values are neither excessively high nor low.
Moving onto the rent economics, the Fair Market Rent (FMR) for ZIP 70125 as of the fiscal year 2024 is set at $1,520. In contrast, the actual market rent, measured by the Zillow Observed Rent Index (ZORI), is higher at $1,794. This difference between FMR and ZORI suggests that landlords participating in the Section 8 program might face challenges in covering their costs fully, given the lower reimbursement rates compared to the market.
Given these economic conditions, ZIP 70125 may not be the best fit for hands-off voucher operators who seek minimal involvement and straightforward management. The discrepancy between the FMR and the market rent implies that landlords must carefully manage their properties to ensure profitability. On the other hand, this environment could be ideal for hands-on value-add buyers who are willing to invest time and resources into improving their properties. Such improvements can help attract tenants who might prefer living in a Section 8 subsidized unit over paying the higher market rent, thus increasing occupancy and potentially stabilizing cash flows.
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.