Section 8 Fair Market Rent (FMR) for ZIP 70404 - 2027

FY 2027 Fair Market Rent Rates

The ZIP code 70404 in Hammond, Louisiana, presents an interesting market for Section 8 real estate analysis. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $1070 for a one-bedroom unit, which is a key figure for determining potential yields.

However, the lack of specific data on market rents and home values means we must rely on the FMR to gauge yield. Given that FMR is typically lower than market rents, the potential for higher yields exists if market rents exceed $1070. Without precise market rent figures, it's challenging to provide a definitive assessment on yield alone.

The stability of the market is another critical factor. Unfortunately, there is insufficient data on the percentage of renters, days on market (DOM), and average income levels. This absence makes it difficult to fully evaluate the stability of the market. If the average income is relatively low compared to the FMR, it could indicate a less stable market due to potential affordability issues.

Based on the available information, ZIP 70404 appears to be neither a high-yield/low-stability flip-style market nor a steady-cashflow zone. It seems to fall somewhere in between, with the potential for reasonable returns but requiring further investigation into local market conditions to ascertain stability.

To make a more informed decision, landlords and small-portfolio investors should seek additional data on market rents and local economic indicators to better understand the yield and stability dynamics of this ZIP code.

Data Sources: FMR data from HUD (2027).

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.