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 | $1,040 |
| 1 Bedroom | $1,160 |
| 2 Bedrooms | $1,400 |
| 3 Bedrooms | $1,800 |
| 4 Bedrooms | $2,110 |
| 5 Bedrooms | $2,448 |
| 6 Bedrooms | $2,742 |
| 7 Bedrooms | $2,961 |
| 8 Bedrooms | $3,109 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,400 | $96,606 | 1.45% | A |
| 3BR | $1,800 | $153,056 | 1.18% | B |
| 4BR | $2,110 | $185,437 | 1.14% | B |
| 5BR | $2,448 | $194,044 | 1.26% | A |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 70126 in New Orleans, Louisiana, for fiscal year 2024 is set at $1220. This figure represents the maximum amount that a landlord can charge for rent under the Section 8 Housing Choice Voucher program. It's important to note that this is not the actual rent you will receive; it's the benchmark used to determine the subsidy amount.
In comparison, the local Zillow Observed Rental Index (ZORI) for ZIP 70126 is currently at $1608. This means that the market rent in your area exceeds the Section 8 payment standard. Therefore, landlords who participate in the Section 8 program will need to accept a lower rent compared to the market rate.
The renter share, which is the percentage of households that rent rather than own, stands at 45.8%. This indicates a strong demand for rental properties in your area, which can be advantageous if you're looking to fill vacancies quickly. However, it also means that competition for tenants can be fierce, especially among those eligible for Section 8 vouchers.
If you're considering purchasing a property to use as a Section 8 rental, the median home value in ZIP 70126 is around $149,899. This price point is relatively affordable, but remember that the income generated from Section 8 will be based on the FMR, not the market rent. As such, your financial projections should reflect the lower rent income.
Before you decide to enter the Section 8 market, one critical step is to verify the condition of the property you plan to rent. The Housing Quality Standards (HQS) set by the U.S. Department of Housing and Urban Development must be met. These standards ensure that the property is safe and habitable, which is essential for maintaining eligibility in the program.
To summarize, while the demand for rentals in ZIP 70126 is high, participating in the Section 8 program means accepting a lower rent compared to the market rate. The median home value suggests that there are opportunities to acquire properties at a reasonable cost, but the success of your investment hinges on ensuring the property meets HQS requirements.
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.