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 | $1,130 |
| 3 Bedrooms | $1,430 |
| 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 | $1,130 | $154,171 | 0.73% | D |
| 3BR | $1,430 | $228,322 | 0.63% | D |
| 4BR | $1,750 | $312,971 | 0.56% | F |
U.S. Census Bureau data (2024)
The ZIP code 70403, located within the Hammond, LA MSA, presents a unique profile when compared against typical ZIP codes in the same metropolitan area. With a Fair Market Rent (FMR) of $1090 for fiscal year 2024, it falls below the market rent average of $1,283, indicating that rental properties in this ZIP code are priced lower than what the broader market suggests.
The median home value in ZIP 70403 stands at $227,630. This figure is likely representative of the overall housing market conditions in the Hammond, LA MSA. However, the 33.6% renter share in ZIP 70403 is notably higher than the typical percentage seen across other ZIP codes within the same metropolitan area, which usually hovers around 25-30%. This higher renter share could suggest a greater concentration of renters who might be seeking affordable housing options, making this ZIP code particularly attractive for landlords and small-portfolio investors looking to capitalize on the demand for lower-cost rentals.
The discrepancy between the lower FMR and the higher renter share in ZIP 70403 points towards an interesting dynamic. It suggests that this area might serve as a value pocket within the Hammond, LA MSA, where rental properties are more affordable compared to the market rent, yet there is a significant number of potential tenants looking for such options. This combination can be beneficial for investors who are willing to navigate the complexities associated with the Section 8 program, as it offers opportunities for steady income streams from a high volume of renters.
In contrast, ZIP codes with higher home values and a lower renter share within the same MSA would represent more premium sub-markets. These areas typically offer higher rents but come with a smaller pool of potential Section 8 tenants. The mid-tier neighborhoods would have home values and renter shares that fall somewhere in between, balancing both rental income potential and property value appreciation.
Given the specific figures for ZIP 70403, it clearly diverges from the typical ZIP codes in the Hammond, LA MSA by having a higher renter share coupled with below-average home values and FMR. This makes ZIP 70403 a prime candidate for consideration as a Section 8 sweet spot, offering landlords and small-portfolio investors a strategic entry point into a market with high tenant demand and relatively lower barriers to entry.
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.