Location: Hammond, LA | Metro: Hammond, LA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $750 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,320 |
| 5 Bedrooms | $1,531 |
| 6 Bedrooms | $1,715 |
| 7 Bedrooms | $1,852 |
| 8 Bedrooms | $1,945 |
U.S. Census Bureau data (2024)
To determine if a landlord should invest in ZIP code 70451 for Section 8 properties, follow these decision points:
1) Does the Fair Market Rent (FMR) of $1020 cover the debt service on a property?
If the FMR of $1020 does not cover the debt service, the answer is No. The landlord would be operating at a loss, which is unsustainable.
If the FMR of $1020 covers the debt service comfortably, proceed to the next question.
2) Is the market rent above, at, or below the FMR?
If the market rent is significantly above $1020, the answer is It Depends. Landlords must consider if they can find tenants willing to accept Section 8 vouchers, as non-voucher tenants might prefer higher-paying options.
If the market rent is at or slightly below $1020, the answer is Yes. This indicates that the FMR aligns well with what the market is offering, making Section 8 tenancy viable.
3) Are there enough potential renters and days on the market (DOM) to ensure demand?
If the rental rate is 100.0% and the DOM is N/A, the answer is Yes. A 100.0% rental rate suggests high demand for rental properties in the area. However, without specific DOM data, it's assumed that properties are being rented quickly, further indicating strong demand.
If the rental rate is less than 100.0%, or if the DOM is longer than expected, the answer is No. This would imply either insufficient demand or a slow rental market, which could pose challenges for maintaining occupancy and cash flow.
In summary, ZIP 70451 appears to be a viable option for landlords interested in Section 8 properties, provided the FMR of $1020 sufficiently covers debt service and the market rent is at or below this figure. Additionally, the strong rental rate of 100.0% supports the conclusion that there is sufficient demand to warrant investment. However, landlords should still verify local conditions and their specific financial situation before making any investment decisions.
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.