Location: Iberia Parish, LA | Metro: Vermilion Parish, LA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $680 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,220 |
| 4 Bedrooms | $1,330 |
| 5 Bedrooms | $1,543 |
| 6 Bedrooms | $1,728 |
| 7 Bedrooms | $1,866 |
| 8 Bedrooms | $1,959 |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $840 for ZIP code 70533 in fiscal year 2024 will sufficiently cover the mortgage on a home valued at $152,888. To evaluate this, consider that the median monthly mortgage payment for a $152,888 home at an interest rate of around 4% over a 30-year term would be approximately $730. Thus, the FMR does provide a buffer above the mortgage payment, allowing for maintenance, insurance, and other costs.
The second objection could be the level of renter demand in ZIP 70533, given that only 24.2% of the population are renters. However, the percentage alone does not tell the whole story. A deeper dive into the local rental market reveals that there are still sufficient numbers of potential tenants. With a total population of roughly 6,300, the 24.2% translates to approximately 1,525 renters. This number is substantial and indicates a viable market for rental properties, especially considering the stability often associated with Section 8 housing.
A third concern might be whether the Housing Choice Voucher program will keep up with the market rents, which are currently at $928. The FMR set by HUD is designed to reflect the average market rent for decent, safe, and sanitary housing. In ZIP 70533, the FMR of $840 is below the current market rent of $928. This discrepancy suggests that landlords accepting vouchers might face challenges covering their expenses if market rents continue to rise. However, HUD adjusts the FMR annually based on market conditions, so it's likely that the FMR will increase in future years to better match the market rent.
While these points address some of the key concerns, it's important to note that the data does not provide a complete picture of every variable that could affect an investment decision. For instance, the specific terms of the mortgage, including interest rates and down payments, can significantly impact the financial feasibility. Additionally, the local economic trends and job market stability play crucial roles in sustaining renter demand and ensuring the long-term success of a rental property.
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.