Location: Lafayette, LA | Metro: Lafayette, 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 | $770 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,270 |
| 4 Bedrooms | $1,490 |
| 5 Bedrooms | $1,728 |
| 6 Bedrooms | $1,935 |
| 7 Bedrooms | $2,090 |
| 8 Bedrooms | $2,195 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $95,472 | 1.06% | B |
U.S. Census Bureau data (2024)
The analysis of ZIP code 70501 in Lafayette, LA, reveals several key points for landlords and small-portfolio investors considering the area. First, let's address whether the rent math works. The Fair Market Rent (FMR) for ZIP 70501 as of fiscal year 2024 is set at $990. In comparison, the market rent, as measured by ZORI (Zillow Observed Rent Index), stands at $1,009. This indicates that landlords can expect a slight premium over the FMR when renting out properties, which is beneficial but requires careful management to ensure affordability for tenants.
Regarding the affordability of acquisitions, the median home value in ZIP 70501 is $106,273, making it relatively accessible for potential buyers. However, the lack of data on days on market (DOM) and the low price-cut share of 0.2% suggest that homes in this area might sell quickly and without significant negotiation room, implying a competitive market for property acquisition.
There is a notable tenant demand in ZIP 70501, with a total population of 26,465 and a renter share of 58.8%. This high percentage of renters signals a strong potential for occupancy, provided the rental units meet the needs and budgets of the local population.
In summary, while the rent math slightly favors landlords with a market rent above FMR, the acquisition costs remain reasonable. The robust tenant demand, driven by a majority of residents preferring to rent, supports the viability of investing in this ZIP code. Landlords should focus on offering properties that align with the budgetary constraints of tenants to maximize occupancy rates and returns.
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.