Location: Jefferson Davis Parish, LA | Metro: Jefferson Davis Parish, LA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $660 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $950 |
| 3 Bedrooms | $1,260 |
| 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 considering ZIP 70581 might have several concerns regarding the viability of rental properties under the Section 8 program. Let's address these concerns head-on using the available data.
Objection 1: Will FMR $880 (metro FY 2026) cover the mortgage on a $146,930 home?
The Fair Market Rent (FMR) of $880 for ZIP 70581 in fiscal year 2026 needs to be compared against the expected mortgage costs. Assuming a standard 30-year fixed-rate mortgage with an interest rate of 4%, the monthly payment on a $146,930 home would be approximately $715. This means that the FMR of $880 is sufficient to cover the mortgage cost and leaves a buffer of $165 per month. However, it's important to consider additional expenses such as property taxes, insurance, and maintenance, which can reduce this buffer.
Objection 2: Is there enough renter demand at 32.5%?
The percentage of renter-occupied housing units at 32.5% suggests that a significant portion of residents own their homes rather than renting. This could indicate lower demand for rental properties, including those under the Section 8 program. While the data does not provide a direct measure of demand, the relatively low rental occupancy rate implies that competition among landlords could be high, potentially putting downward pressure on rental rates. To mitigate this risk, landlords should focus on maintaining competitive properties that meet the criteria for Section 8 tenancy.
Objection 3: Will vouchers keep pace with N/A market rents?
The data provided does not include information on the current market rents in ZIP 70581, nor does it offer insight into whether voucher amounts will adjust accordingly over time. The FMR of $880 is a guideline set by HUD and represents the maximum amount that a voucher holder can pay in rent. If market rents exceed this figure, landlords may face challenges in finding tenants willing to pay the higher rates. Conversely, if market rents remain stable or below the FMR, the program can effectively support affordable housing options. To ensure long-term viability, landlords should monitor local market trends and communicate with housing authorities to understand any adjustments to voucher amounts.
In conclusion, while the FMR of $880 appears to cover the mortgage on a $146,930 home, the overall rental demand at 32.5% indicates a need for competitive properties. The lack of data on market rents makes it difficult to assess how well vouchers will keep up with actual costs, underscoring the importance of staying informed about local market conditions and policy changes.
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.