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)
The economics of Section 8 in ZIP code 70395 are defined by the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, which is set at $1010 for fiscal year 2024. This SAFMR figure is specific to this ZIP code, meaning it reflects the rental rates considered fair within 70395 alone.
In comparison, the local market rent for a two-bedroom unit in ZIP 70395, according to the Census ACS data, is $953. This indicates that the SAFMR is slightly above the average market rent, providing a potential advantage for landlords who participate in the program.
A landlord must understand how the voucher system works to maximize their benefits. The voucher does not cover the entire rent amount; instead, it reimburses the landlord based on the SAFMR minus the tenant's portion of the rent. Typically, the tenant is required to pay 30% of their income towards rent, which is capped at the lower of either 30% of their adjusted monthly income or the HUD-established payment standard for the area.
Let’s assume the tenant’s portion is $300, which is a common figure for low-income households. The remaining balance is covered by the voucher. However, the voucher also includes an allowance for utilities, which can vary but is often around $150 per month. Therefore, the total reimbursement a landlord might receive is $1010 - $300 (tenant contribution) + $150 (utility allowance).
This calculation results in a total reimbursement of $860 for the landlord. Given the local market rent of $953, landlords participating in the Section 8 program would face a reimbursement gap of $93 per month for a two-bedroom unit. This gap represents the difference between the actual market rent and the reimbursement received from the voucher plus utility allowance.
To summarize, landlords in ZIP 70395 who accept Section 8 vouchers will be reimbursed $860 for a two-bedroom apartment, leading to a shortfall of $93 compared to the local market rent of $953. This gap should be factored into any decision to participate in the program.
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.