Location: Washington Parish, LA | Metro: Slidell-Mandeville-Covington, LA MSA
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 | $1,060 |
| 1 Bedroom | $1,210 |
| 2 Bedrooms | $1,440 |
| 3 Bedrooms | $1,840 |
| 4 Bedrooms | $2,160 |
| 5 Bedrooms | $2,506 |
| 6 Bedrooms | $2,807 |
| 7 Bedrooms | $3,032 |
| 8 Bedrooms | $3,184 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,840 | $310,839 | 0.59% | F |
| 4BR | $2,160 | $444,941 | 0.49% | F |
U.S. Census Bureau data (2024)
The analysis for ZIP code 70431 reveals a detailed picture of the potential Section 8 cap rates for landlords and small-portfolio investors. To start, the Fair Market Rent (FMR) for a two-bedroom apartment in this area, as determined by HUD for FY 2024, is set at $1720 per month. When annualized, this figure translates to an annual rental income of $20,640.
In contrast, the market rent for a similar unit, based on Census ACS data, stands at $1,252 per month. This equates to an annual rental income of $15,024 when annualized. The median home value in ZIP 70431 is $289,367, which provides a benchmark for property valuation.
Given these figures, the implied gross yield for a Section 8 property can be calculated. For the FMR scenario, the gross yield would be approximately 7.14%, derived by dividing the annual rental income ($20,640) by the median home value ($289,367). In the case of market rent, the gross yield drops to about 5.2%, calculated by dividing the annual rental income ($15,024) by the median home value ($289,367).
Considering the 7.4% renter density in ZIP 70431, it is evident that the market conditions favor a higher proportion of homeowners over renters. This lower renter density suggests that the actual occupancy rate might be challenging to maintain consistently at 100%, especially for Section 8 properties which often have longer wait times and specific tenant requirements.
The N/A-day DOM (Days on Market) indicates that there is insufficient data to determine how quickly properties are typically leased in this area. However, given the higher FMR compared to market rent, the Section 8 scenario presents a more attractive gross yield for landlords willing to participate in the program. At 7.14%, the FMR-based gross yield offers a significant premium over the market rent yield of 5.2%, making it a potentially better investment choice despite the challenges associated with higher renter density needs.
To conclude, while the market rent scenario provides a realistic baseline, the Section 8 FMR scenario offers a more lucrative gross yield. Landlords should weigh the benefits of higher yields against the operational complexities of the Section 8 program to decide which scenario aligns best with their investment strategy.
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.