Location: Houma-Bayou Cane-Thibodaux, LA | Metro: Houma-Bayou Cane-Thibodaux, LA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,460 |
| 5 Bedrooms | $1,694 |
| 6 Bedrooms | $1,897 |
| 7 Bedrooms | $2,049 |
| 8 Bedrooms | $2,151 |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in ZIP 70310 under the Section 8 program are significant. First, consider the tenant turnover rate. While the Fair Market Rent (FMR) for ZIP 70310 in fiscal year 2024 is set at $1070, the actual market rent is currently unknown, indicating a possible gap between what landlords can charge and what tenants can afford through vouchers. This discrepancy could lead to frequent turnovers, as tenants may struggle to find homes that fit their budgetary constraints.
Vacancy exposure is another critical issue. The average days on market (DOM) for properties in ZIP 70310 is not available, which suggests a lack of historical data on how quickly rental units typically fill. Without this information, landlords cannot accurately predict their exposure to vacancy periods, which can significantly impact cash flow.
Deferred maintenance poses a third risk. With both the typical home value and median income unspecified, it's challenging to gauge the financial health of property owners and their ability to maintain their homes adequately. In areas where incomes are lower relative to housing costs, landlords might be tempted to cut corners on maintenance to save money, leading to subpar living conditions and potential legal issues.
Despite these challenges, the high proportion of renters in ZIP 70310 presents an opportunity. Although the exact percentage of renters is not provided, a high renter share often correlates with increased demand for Section 8 vouchers. This demand can help stabilize occupancy rates, even if individual tenants move frequently. Landlords who are willing to navigate the complexities of the Section 8 program can benefit from a steady stream of qualified tenants.
Verdict: Moderate risk for a first-time Section 8 landlord.
Data Sources: FMR data from HUD (2027). 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.