Location: Houma-Bayou Cane-Thibodaux, LA | Metro: Houma-Bayou Cane-Thibodaux, LA MSA
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 | $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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,200 | $211,294 | 0.57% | F |
U.S. Census Bureau data (2024)
The potential pitfalls for landlords investing in ZIP 70394 under the Section 8 program are significant. First, tenant turnover poses a substantial challenge. The market rent stands at $698, while the Fair Market Rent (FMR) for FY 2024 is set at $1010. This gap suggests that tenants might be attracted by the subsidized rates but could also leave when better opportunities arise, leading to higher churn rates and associated costs.
Vacancy exposure is another critical risk factor. With a day on market (DOM) figure not available, it's difficult to predict how quickly properties will fill up once vacated. However, the lack of data here indicates a possible inefficiency in the local rental market, which could result in prolonged vacancies and lost revenue.
The deferred maintenance exposure is noteworthy as well. Given a typical home value of $175,284 and a median income of $64,337, many homeowners might struggle to keep up with necessary repairs and upgrades. This situation can lead to lower property values and increased maintenance costs for landlords, especially if they inherit homes needing extensive work.
Despite these risks, the high renter share of 17.3% in ZIP 70394 offers a silver lining. High renter density often correlates with a robust demand for rental vouchers, providing a stable pool of potential tenants who are guaranteed to pay through the Section 8 program. This demand helps mitigate the risk of vacancy and ensures a steady stream of income.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 70394 is moderate. While there are significant challenges related to tenant turnover, vacancy exposure, and deferred maintenance, the high renter share provides a cushion of stability that can offset some of these concerns.
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.