Location: Hammond, LA | Metro: Baton Rouge, LA HUD Metro FMR Area
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 | $930 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,750 |
| 5 Bedrooms | $2,030 |
| 6 Bedrooms | $2,274 |
| 7 Bedrooms | $2,456 |
| 8 Bedrooms | $2,579 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,090 | $131,280 | 0.83% | C |
| 3BR | $1,380 | $226,047 | 0.61% | D |
| 4BR | $1,750 | $291,718 | 0.6% | F |
U.S. Census Bureau data (2024)
The ZIP code 70401 in Hammond, Louisiana, presents a unique balance between yield and stability for real-estate investors. On the yield axis, the Fair Market Rent (FMR) for a unit priced at $1050 is notably below the market rate of $1,190, indicating potential opportunities for rental income growth. However, the median home value stands at $214,481, which is relatively high compared to the rental rates. This suggests that while there is room for increasing rents to match market levels, the initial investment required for property acquisition is significant.
Moving to the stability axis, the area has a substantial 54.1% of its population renting, providing a consistent demand for rental properties. Unfortunately, the lack of data on days on market (DOM) makes it challenging to assess the speed at which properties can be leased. The median household income of $50,653 offers insight into the financial capability of residents to afford higher rent, though it also implies a limit to how much rent can be raised without risking vacancy.
Given these figures, ZIP 70401 leans towards being a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The relatively low FMR compared to the market rate suggests modest potential for increasing rental income, but the high median home value and moderate income levels indicate that aggressive price hikes could backfire. The strong rental market presence ensures a reliable tenant pool, supporting long-term investment strategies over quick flips.
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.