Location: Hammond, LA | Metro: Baton Rouge, LA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $930 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,750 |
| 5 Bedrooms | $2,030 |
| 6 Bedrooms | $2,274 |
| 7 Bedrooms | $2,456 |
| 8 Bedrooms | $2,579 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP 70422 are straightforward. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) for FY 2024 is set at $1010. This figure is specific to this ZIP code, meaning it reflects the rental value determined for this particular area.
Local market rent, according to the Census ACS, averages $916 for a similar unit. This indicates that the SAFMR is higher than the average local rent, which can be advantageous for landlords participating in the program.
A landlord who accepts a Section 8 voucher should understand the payment structure clearly. The voucher program reimburses landlords based on the SAFMR, minus the tenant's portion and any utility allowances. Typically, the tenant pays 30% of their adjusted income towards rent. If we assume an average tenant income that translates into a $300 contribution towards rent, then the landlord would receive the remaining balance up to the SAFMR limit.
In ZIP 70422, if a landlord charges the SAFMR rate of $1010, and the tenant contributes $300, the government would pay the difference, which is $710. However, the government also provides utility allowances, which vary but generally add around $200 to the reimbursement. Thus, the total reimbursement to the landlord would be approximately $910.
This means that in ZIP 70422, landlords participating in the Section 8 program could see a surplus of about $94 compared to the local market rent of $916. Conversely, if the landlord charges less than the SAFMR, say $916, the government would still pay the difference plus utilities, ensuring the landlord receives the full local market rent amount.
The key takeaway for landlords is that accepting a Section 8 voucher does not necessarily mean receiving less than the local market rent. In ZIP 70422, the SAFMR is structured to provide a slight surplus over the average market rate, making participation financially viable and often beneficial.
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.