Location: Lafayette, LA | Metro: Lafayette, LA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
U.S. Census Bureau data (2024)
The ZIP code 70507 is located in a neighborhood characterized by a moderate population size of 20,096 residents, with nearly 28.2% of them being renters. The median household income here stands at $64,049, which provides a reasonable economic foundation for the area. The median home value in ZIP 70507 is $213,862, indicating a stable housing market where property values reflect a balance between affordability and quality.
Turning to the rent economics, the Fair Market Rent (FMR) for ZIP 70507 for fiscal year 2024 is set at $990. This is significantly lower than the market rent, as measured by the Zillow Observed Rental Index (ZORI), which is $1,495. This discrepancy suggests that there is potential for rental properties to be priced above the FMR, catering to both government-subsidized tenants and those willing to pay market rates. For landlords and small-portfolio investors, this gap presents an opportunity to earn higher returns by leveraging the difference between subsidized and market rents.
Does this place suit a hands-off voucher operator or a hands-on value-add buyer? Given the current economic landscape of ZIP 70507, it appears to favor a hands-on approach. With a notable portion of the population renting and a significant disparity between FMR and market rent, there is ample room for value-add strategies. These might include property renovations or targeted marketing efforts to attract market-rate tenants. A hands-off operator could still find success, particularly if they focus on maintaining a portfolio of properties that meet the needs of Section 8 tenants while keeping costs low enough to remain 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.