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 | $1,110 |
| 1 Bedroom | $1,250 |
| 2 Bedrooms | $1,500 |
| 3 Bedrooms | $1,930 |
| 4 Bedrooms | $2,260 |
| 5 Bedrooms | $2,622 |
| 6 Bedrooms | $2,937 |
| 7 Bedrooms | $3,172 |
| 8 Bedrooms | $3,331 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,500 | $104,071 | 1.44% | A |
| 3BR | $1,930 | $164,776 | 1.17% | B |
| 4BR | $2,260 | $226,471 | 1% | C |
| 5BR | $2,622 | $269,379 | 0.97% | C |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 70128 in New Orleans, Louisiana, reveals a favorable environment for rental properties. The HUD Fair Market Rent (FMR) for the area is set at $1400 for fiscal year 2024. This figure is significantly higher than the Census American Community Survey (ACS) reported average market rent of $1,182, indicating that voucher tenants can provide a positive cash flow when renting at the HUD FMR rate.
To understand the financial landscape better, consider the median home value in ZIP 70128, which stands at $175,081. Using this figure, we can calculate the rent-to-price ratio. With an average market rent of $1,182, the annual rent would be approximately $14,184. Dividing this by the median home value gives us a rent-to-price ratio of about 8%, suggesting that rental income is relatively low compared to property values. However, this does not affect the positive cash flow potential for Section 8 voucher holders who pay closer to the $1400 FMR rate.
In terms of days on market (DOM) and price-cut shares, both metrics are listed as N/A for the region. This indicates that there is limited data available on how long homes typically stay on the market before selling and the percentage of homes that require price reductions. Despite these missing details, the strong disparity between the HUD FMR and the average market rent suggests that investors focusing on rental properties will benefit from a consistent and reliable cash flow.
The strongest angle for investors in ZIP 70128 is undoubtedly cash flow. Given the higher HUD FMR relative to the average market rent, properties rented to voucher holders can generate a steady income, making it an attractive option for landlords and small-portfolio investors looking to maximize their returns.
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.