Location: St. Landry Parish, LA | Metro: Evangeline Parish, LA
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 | $630 |
| 1 Bedroom | $680 |
| 2 Bedrooms | $890 |
| 3 Bedrooms | $1,090 |
| 4 Bedrooms | $1,170 |
| 5 Bedrooms | $1,357 |
| 6 Bedrooms | $1,520 |
| 7 Bedrooms | $1,642 |
| 8 Bedrooms | $1,724 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $890 | $83,639 | 1.06% | B |
| 3BR | $1,090 | $172,059 | 0.63% | D |
| 4BR | $1,170 | $254,782 | 0.46% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking at ZIP code 70570, located in Opelousas, Louisiana, might have several concerns regarding the viability of participating in the Section 8 housing program. Let's address these concerns directly using the available data.
Objection 1: Will FMR $850 (metro FY 2026) cover the mortgage on a $122,647 home?
The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $850. This amount must be sufficient to cover the mortgage payments on a property valued at $122,647. According to typical financing practices, a mortgage payment on a home priced at $122,647 could vary significantly based on factors such as interest rates, down payment size, and loan terms. However, assuming a standard 30-year fixed-rate mortgage with an interest rate around 4% and a 20% down payment, the monthly mortgage payment would be approximately $460. This figure does not include property taxes and insurance, which can add another $100-$200 per month. Thus, the FMR of $850 would indeed cover the mortgage, but it leaves little room for error or additional costs.
Objection 2: Is there enough renter demand at 28.8%?
The percentage of renter-occupied households in ZIP 70570 is 28.8%. This indicates that nearly a third of the residents in the area are renters, which is a reasonable proportion. However, the data does not specify how many of these renters are eligible for or interested in the Section 8 program. To determine if there is sufficient demand, an investor would need to consider the local unemployment rate, the number of families below the poverty line, and the availability of Section 8 vouchers. Without this detailed breakdown, it is difficult to definitively conclude whether the demand for Section 8 rental properties is strong enough.
Objection 3: Will vouchers keep pace with $751 market rents?
The current market rent in ZIP 70570 is $751. An investor might question whether the Section 8 voucher amounts will increase in line with market rents. The web_search tool can provide insights into recent trends and policy updates, but it does not guarantee future adjustments. Historically, voucher amounts have been adjusted periodically to reflect changes in the cost of living and housing prices. However, the timing and extent of these adjustments are subject to federal budget allocations and policy decisions. Given the historical pattern, it is reasonable to expect that vouchers will eventually align with market rents, but there is no assurance of when this will happen or how closely they will match.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.