Location: Houma-Bayou Cane-Thibodaux, LA | Metro: Houma-Bayou Cane-Thibodaux, LA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $690 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,200 |
| 4 Bedrooms | $1,320 |
| 5 Bedrooms | $1,531 |
| 6 Bedrooms | $1,715 |
| 7 Bedrooms | $1,852 |
| 8 Bedrooms | $1,945 |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1140 for ZIP 70345 can cover the mortgage on a home valued at $139,725. To address this concern, let’s consider the typical mortgage payment for a home in this price range. Assuming a 30-year fixed-rate mortgage with an interest rate of around 5%, the monthly mortgage payment would be approximately $750. This amount is well below the FMR, indicating that the rent could indeed cover the mortgage and provide some profit.
The investor may also doubt if there is sufficient rental demand given that only 18.4% of households are renters. However, the demand for affordable housing remains strong in many areas, especially those with a significant portion of low-income families who rely on rental assistance. The data does not provide a direct measure of rental demand but suggests that the percentage of renters is not negligible and could still support a modest portfolio of rental properties.
Another objection could be whether Housing Choice Vouchers will keep pace with market rents, currently at $802. While the voucher amount is lower than the market rent, it is important to note that voucher holders often supplement the difference with their own funds. Additionally, the U.S. Department of Housing and Urban Development (HUD) adjusts voucher amounts annually based on local market conditions. Thus, while there is no guarantee that voucher amounts will exactly match market rents, they are designed to reflect local housing costs and should continue to support tenants in finding suitable housing.
In conclusion, while the data does not provide all the answers, it suggests that the FMR is sufficient to cover the mortgage on a home in this price range, there is a modest level of rental demand, and Housing Choice Vouchers are likely to remain aligned with local market conditions.
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.