Location: Hammond, LA | Metro: Hammond, LA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $750 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,380 |
| 5 Bedrooms | $1,601 |
| 6 Bedrooms | $1,793 |
| 7 Bedrooms | $1,936 |
| 8 Bedrooms | $2,033 |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP code 70442 for Section 8 purposes, follow this decision tree:
Step 1: The Fair Market Rent (FMR) for ZIP 70442 in fiscal year 2024 is $1060. This figure must be compared against the debt service of the property in question. Since the property value and associated debt service are not specified, we cannot definitively answer whether the FMR clears the debt service. However, if your property's debt service is less than or equal to $1060, then the answer is yes; otherwise, it is no.
Step 2: Next, assess the relationship between the market rent and the FMR. If the market rent is above $1060, then properties are generally rented at rates higher than what the government will pay under Section 8. This means that landlords might face a shortfall unless they can secure non-Section 8 tenants willing to pay the higher market rate. If the market rent is at or below $1060, then the FMR covers the rental costs adequately, making it a viable option for Section 8 participation.
Step 3: Evaluate the demand in the area. Currently, 0.0% of the population are renters, and the days on the market (DOM) for rental listings are not specified. A low percentage of renters suggests minimal demand for rentals overall. Without knowing the DOM, it's challenging to gauge how competitive the rental market is. If the DOM is high, it indicates difficulty in renting out properties quickly, which could pose challenges for maintaining a steady income stream. Conversely, if the DOM is low, it implies a quicker turnover and potentially more stable demand.
The decision to invest in ZIP 70442 for Section 8 properties hinges on these factors. If the FMR does not cover the debt service, do not proceed. If the market rent is significantly above the FMR, consider the potential for securing higher-paying tenants. Lastly, if there is insufficient demand as indicated by the DOM, the investment may not be profitable.
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.