Location: Washington Parish, LA | Metro: Hammond, 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 | $1,020 |
| 1 Bedroom | $1,110 |
| 2 Bedrooms | $1,290 |
| 3 Bedrooms | $1,660 |
| 4 Bedrooms | $1,900 |
| 5 Bedrooms | $2,204 |
| 6 Bedrooms | $2,468 |
| 7 Bedrooms | $2,665 |
| 8 Bedrooms | $2,798 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,290 | $227,783 | 0.57% | F |
| 3BR | $1,660 | $287,893 | 0.58% | F |
| 4BR | $1,900 | $370,418 | 0.51% | F |
| 5BR | $2,204 | $558,634 | 0.39% | F |
U.S. Census Bureau data (2024)
The median household income in ZIP 70435, Covington, LA, stands at $80,926. Against this backdrop, the market-rate rent of $1,950 (ZORI) presents a significant challenge for renters. This figure represents nearly 24% of the median income, which is above the generally recommended threshold of 30%. However, when considering the Federal Market Rent (FMR) for voucher payments, which is set at $1,400 for the fiscal year 2024, the situation becomes more nuanced.
The affordability gap between the ZORI and FMR highlights the financial strain many renters face. While the market rate is $1,950, the voucher payment is $1,400, indicating a shortfall of $550 per month for landlords who choose to accept vouchers. This discrepancy could influence the rental strategy landlords adopt in the area.
Covington has a relatively low rental market share, with only 12.2% of its 22,475 residents identified as renters. This suggests that the rental market is smaller and potentially more competitive. Landlords must weigh the benefits of accepting vouchers against the higher market rates they might achieve with cash-paying tenants.
The takeaway for landlords in ZIP 70435 is clear: while accepting vouchers ensures steady income and avoids the risk of vacancy, it comes with a lower monthly rent compared to market rates. On the other hand, targeting cash-paying tenants could yield higher returns but also increases the risk of facing a more competitive rental market and potentially longer vacancy periods. The decision should be based on a careful assessment of the local rental demand and the landlord's tolerance for risk.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.