Location: Acadia Parish, LA | Metro: Lafayette, LA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
U.S. Census Bureau data (2024)
In ZIP code 70583, the economics of Section 8 housing involve understanding the SAFMR (Small Area Fair Market Rent) and how it interacts with local market rents. For a two-bedroom apartment, the SAFMR for FY 2024 is set at $920. This figure represents the maximum amount that a landlord can receive from the government under the Section 8 program for this specific ZIP code.
The local market rent, according to the Census ACS, is $1,017 for a two-bedroom unit. This indicates that landlords in ZIP 70583 might be renting out their properties above the SAFMR rate. However, the Section 8 program does not pay the full market rent; instead, it covers the difference between the tenant's portion and the SAFMR.
A landlord participating in the Section 8 program should understand that the reimbursement is calculated based on the lower of three amounts: the contract rent (the rent agreed upon in the lease), the family’s portion of the rent (based on their income), or the SAFMR. In ZIP 70583, if the contract rent is higher than $920, the landlord will only receive up to $920 from the government, plus any applicable utility allowances.
The tenant's portion of the rent is typically 30% of their adjusted monthly income. If the tenant's income is low enough, they may only pay a nominal amount towards rent. Utility allowances vary but are generally around $200 per month for a two-bedroom apartment. These allowances are paid directly to the tenant to cover utilities, not included in the SAFMR calculation.
To illustrate, let's assume a tenant's portion of the rent is $276 (30% of a hypothetical $920 monthly income). With an additional utility allowance of $200, the total reimbursement would be $476. Therefore, the landlord in ZIP 70583 would receive $920 from the government plus $476 from the tenant, totaling $1,396.
However, since the market rent is $1,017, the actual reimbursement gap or surplus in ZIP 70583 for a two-bedroom apartment is a surplus of $379. This means that landlords could potentially receive more than the market rent for a two-bedroom property when considering both the government reimbursement and the tenant's payment.
It's important to note that while the SAFMR is set for this specific ZIP code, market conditions can fluctuate. Landlords should regularly review their rental strategies and adjust to changes in local market conditions to ensure profitability and compliance with Section 8 guidelines.
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.