Location: Evangeline Parish, LA | Metro: Evangeline Parish, LA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $690 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $950 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,250 |
| 5 Bedrooms | $1,450 |
| 6 Bedrooms | $1,624 |
| 7 Bedrooms | $1,754 |
| 8 Bedrooms | $1,842 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 70576 provides a clear picture of potential rental yields in an area where specific data points are limited. The Fair Market Rent (FMR) for a 2-bedroom apartment in the fiscal year 2026 is set at $870 annually, while the market rent, according to the Census ACS, is $800 annually. However, the median home value is not available, which complicates a direct comparison.
To calculate the implied gross yield, we must first understand that the cap rate is the ratio between the net operating income produced by an asset and its purchase price. In the case of Section 8 properties, the gross yield can be derived by dividing the annualized rent by the property value. Since the median home value is not available, we will use the FMR and market rent figures to illustrate the potential yields.
If we assume a hypothetical median home value, the gross yield using the FMR would be higher than the gross yield using the market rent. For instance, if we hypothetically assign a median home value of $200,000 (for illustrative purposes only), the gross yield based on the FMR would be 0.435% ($870 / $200,000), while the gross yield based on the market rent would be 0.4% ($800 / $200,000).
Given the 26.1% renter density in ZIP 70576, it's important to note that a significant portion of residents are already renters, which could indicate a stable demand for rental housing. However, the lack of data on the average days on market (DOM) makes it challenging to predict how quickly a property might be leased, especially under a Section 8 program.
The higher gross yield implied by the FMR suggests a potentially better financial outcome for landlords participating in the Section 8 program. However, this must be weighed against the administrative complexities and potential delays in lease-up times. The market rent figure, while lower, reflects current market conditions and could be more realistic for landlords seeking immediate occupancy.
In conclusion, while the FMR offers a slightly more attractive gross yield, the actual performance of a Section 8 property in ZIP 70576 will depend on various factors including the property's condition, location, and the efficiency of the local housing authority. Small-portfolio investors should consider these elements carefully before making investment decisions.
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.