Section 8 Fair Market Rent (FMR) for ZIP 70131 - 2027

Location: New Orleans-Metairie, LA | Metro: New Orleans-Metairie, LA HUD Metro FMR Area

Investment Score for ZIP 70131

Monthly Rent (2BR)

$1,310

Median Price (2BR)

$114,730

1% Rule

1.14%

Annual Yield

13.7%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$970
1 Bedroom	$1,090
2 Bedrooms	$1,310
3 Bedrooms	$1,680
4 Bedrooms	$1,980
5 Bedrooms	$2,297
6 Bedrooms	$2,573
7 Bedrooms	$2,779
8 Bedrooms	$2,918

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,310	$114,730	1.14%	B
3BR	$1,680	$176,518	0.95%	C
4BR	$1,980	$260,330	0.76%	D
5BR	$2,297	$320,667	0.72%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

25,151

Median Household Income

$62,389

Housing Units

11,844

Renter Percentage

34.6%

Occupancy Rate

85.9%

Renter Occupied

3,517

To determine if you should buy in ZIP code 70131 (New Orleans, LA) for Section 8 investment, follow this decision tree:

Does the Fair Market Rent (FMR) of $1260 cover the debt service on a property valued at $210,756?
- If yes: The FMR of $1260 is sufficient to meet the debt service requirements, making it a viable option.
- If no: The FMR of $1260 does not cover the debt service, indicating that this area is not suitable for Section 8 investment.
Is the market rent ($1,395 ZORI) above, at, or below the FMR?
- If above: Market rent exceeds the FMR, suggesting that landlords could potentially earn more by renting outside of Section 8.
- If at or below: Market rent aligns closely with or is below the FMR, which means Section 8 could be competitive or even preferable.
Are 34.6% of residents renters and is the Days on Market (DOM) of 51 days enough to indicate demand?
- If yes: With 34.6% of residents being renters and an average DOM of 51 days, there is sufficient demand to support Section 8 investments.
- If no: If these percentages and DOM do not meet your criteria, then the demand is insufficient for a positive investment outcome.

The decision hinges on whether the FMR can cover the debt service and whether the market conditions favor Section 8 tenancy. Given the FMR of $1260 and a property value of $210,756, calculate your debt service to see if it's covered. If market rent at $1,395 ZORI is above the FMR, consider alternative non-Section 8 options. However, with 34.6% of residents as renters and a DOM of 51 days, the rental market shows healthy demand.

Based on these criteria, if the FMR clears debt service and you find the market conditions favorable, the answer is yes. Otherwise, it is no.

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.