Location: Hammond, LA | Metro: Baton Rouge, LA HUD Metro FMR Area
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 | $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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,360 | $229,633 | 0.59% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 70443 might have several concerns regarding the feasibility of investing in properties under Section 8. Here's a detailed look at those concerns using the available data.
Objection 1: Will the Fair Market Rent (FMR) of $1060 for ZIP 70443 cover the mortgage on a $191,945 home?
The FMR of $1060 must be evaluated against the mortgage payments expected on a home valued at $191,945. To determine if it covers the mortgage, we need to calculate the monthly payment based on typical financing terms. Assuming a 30-year fixed-rate mortgage with an interest rate of around 5%, the monthly payment for a principal amount of $191,945 would be approximately $1045. This calculation includes principal and interest but excludes property taxes and insurance, which would add to the total cost. Therefore, the FMR of $1060 does cover the mortgage payment, leaving a small margin for additional expenses such as maintenance and utilities.
Objection 2: Is there enough renter demand at 29.8%?
The rental demand in ZIP 70443 stands at 29.8%. While this percentage is relatively low compared to some high-demand areas, it still represents a significant portion of potential renters. However, the data does not provide specifics on the number of units available or the vacancy rates. Without these details, it's challenging to definitively state whether the demand is sufficient. Yet, given that the FMR aligns closely with the mortgage payment, it suggests that the market can support the number of renters willing to pay the subsidized rate.
Objection 3: Will vouchers keep pace with market rents of $971?
The current market rent of $971 is slightly below the FMR of $1060, indicating that the voucher amounts are likely to be sufficient to cover market rents. However, the key concern is whether the voucher amounts will adjust over time to match increases in market rents. The data does not specify historical trends or future projections for voucher amounts. In general, HUD adjusts voucher amounts annually to reflect changes in the housing market, but the exact rate of adjustment is uncertain without further analysis. Given the current figures, the vouchers do cover the market rents, but long-term stability requires monitoring annual adjustments.
In summary, while the data provides a snapshot that supports the viability of investing in ZIP 70443 under Section 8, certain aspects like the exact impact of additional costs and long-term trends in voucher adjustments remain unclear. These points should be considered when making investment decisions.
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.