Location: St. Mary Parish, LA | Metro: St. Mary Parish, LA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $750 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $990 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate scenario for ZIP code 70538 reveals a clear picture when comparing the Federal Market Rent (FMR) and market rent figures. For a two-bedroom unit, the annualized FMR for FY 2026 is set at $950, while the Census ACS reports the market rent at $733. Given the median home value of $89,338 in this area, we can calculate the implied gross yields for both scenarios.
In the case of the FMR, the annualized rental income would be $11,400 ($950 x 12 months), leading to an implied gross yield of approximately 12.76%. This calculation is derived by dividing the annual rental income by the median home value: $11,400 / $89,338 = 12.76%. However, the FMR represents the maximum amount that a landlord can charge under the Section 8 program, and it's typically higher than what the average market rent would suggest.
On the other hand, using the market rent figure of $733, the annual rental income would be $8,796 ($733 x 12 months). This results in an implied gross yield of about 9.84%, calculated as $8,796 / $89,338 = 9.84%. The market rent provides a more accurate reflection of what tenants are willing to pay, making this scenario more realistic for most investors.
ZIP 70538 has a renter density of 25.6%, indicating a moderate proportion of renters in the area. This percentage suggests that there is a reasonable demand for rental properties, but it also implies that a significant portion of the population owns homes. The N/A-day DOM (Days on Market) indicates that the data for how long properties stay on the market before being rented is unavailable, which could affect the accuracy of the gross yield predictions. However, based on the available information, the market rent scenario of 9.84% is more likely to represent actual rental income potential.
The FMR scenario might only apply if the landlord exclusively rents to Section 8 participants, which is less common due to the administrative burden and potential delays in receiving rent payments. Therefore, for most landlords and small-portfolio investors, the market rent gross yield of 9.84% is the more practical figure to consider in their investment calculations.
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.