Location: Vermilion Parish, 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 | $990 |
| 1 Bedroom | $1,240 |
| 2 Bedrooms | $1,350 |
| 3 Bedrooms | $1,770 |
| 4 Bedrooms | $1,790 |
| 5 Bedrooms | $2,076 |
| 6 Bedrooms | $2,325 |
| 7 Bedrooms | $2,511 |
| 8 Bedrooms | $2,637 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,770 | $242,184 | 0.73% | D |
U.S. Census Bureau data (2024)
Vermilion Parish, specifically ZIP code 70555, presents an interesting opportunity for inclusion in a Section 8 portfolio strategy. The area's Fair Market Rent (FMR) for FY 2024 is set at $1020, which is significantly lower than the market rent of $1950. This creates a spread of $930 per unit, making it a strong candidate as a cash-flow anchor.
The disparity between the FMR and the market rent indicates that landlords can secure a steady, predictable income stream through Section 8 vouchers while still maintaining a substantial buffer above the subsidized rate. This buffer provides a safety net against potential increases in operating costs, such as maintenance, utilities, and property taxes, ensuring that the investment remains profitable even under less favorable conditions.
The median home value in ZIP 70555 stands at $251,755, which is relatively modest compared to other areas in Louisiana. Given this context, the primary focus for investors should be on the rental aspect rather than the potential for rapid appreciation. However, the long-term stability of the rental market and the predictability of Section 8 payments make it a reliable asset for generating consistent cash flow.
The renter share in the area is 16.5%, indicating a moderate presence of renters who could benefit from Section 8 assistance. Additionally, the median income of $76,213 suggests that there is a sufficient economic base to support the demand for affordable housing without significant risk of default.
In conclusion, ZIP 70555 serves best as a cash-flow anchor within a Section 8 portfolio strategy. The significant spread between the FMR and market rent ensures a robust income stream, while the economic indicators point towards a stable and sustainable tenant pool. This makes it a valuable component for landlords and small-portfolio investors looking to balance their investments with low-risk, high-yield properties.
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.