Location: Vermilion Parish, LA | Metro: Vermilion Parish, 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 | $660 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $900 |
| 3 Bedrooms | $1,180 |
| 4 Bedrooms | $1,180 |
| 5 Bedrooms | $1,369 |
| 6 Bedrooms | $1,533 |
| 7 Bedrooms | $1,656 |
| 8 Bedrooms | $1,739 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,180 | $172,433 | 0.68% | D |
U.S. Census Bureau data (2024)
The classification of ZIP code 70510 for real estate investment, particularly focusing on Section 8 properties, hinges on the balance between yield and stability. The yield potential is driven by the Federal Market Rent (FMR) at $850 for fiscal year 2024, compared to the market rent of $823. This indicates a slight premium for Section 8 properties, suggesting a modest yield advantage over the general rental market.
To further analyze yield, consider the median home value of $136,960. Assuming an investor purchases a property near this median value, the rental income generated from a Section 8 tenant would offer a decent cash-on-cash return. However, the yield is not exceptionally high given that the FMR only marginally exceeds the market rent.
Moving onto stability, the ZIP code has 31.2% of its residents as renters, which is a moderate percentage indicating a stable demand for rental housing. The average household income is $49,717, which suggests a reasonable economic base for maintaining rental payments. Unfortunately, the data lacks information on the number of days on market (DOM), which could have provided insights into how quickly properties are rented out, thus affecting the overall stability and cash flow predictability.
The absence of a day DOM figure means we must rely on other indicators for stability. With 31.2% of residents renting, there's a steady pool of tenants, but it's not a high percentage that would typically characterize a highly volatile rental market. The income figure supports a stable economic environment where tenants can reasonably afford their rent obligations.
Conclusion: ZIP code 70510 falls into a category that offers a balanced approach between yield and stability. It is neither a high-yield/low-stability 'flip-style' market nor a purely steady-cashflow zone. Instead, it presents opportunities for investors seeking a modest yield advantage with a relatively stable tenant base and rental market conditions.
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.