Location: Jefferson Davis Parish, LA | Metro: Jefferson Davis Parish, LA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $620 |
| 1 Bedroom | $680 |
| 2 Bedrooms | $890 |
| 3 Bedrooms | $1,180 |
| 4 Bedrooms | $1,320 |
| 5 Bedrooms | $1,531 |
| 6 Bedrooms | $1,715 |
| 7 Bedrooms | $1,852 |
| 8 Bedrooms | $1,945 |
U.S. Census Bureau data (2024)
A landlord considering purchasing a property in ZIP code 70591 for Section 8 should follow this decision tree:
1) Does the Fair Market Rent (FMR) of $830 cover the debt service on a $148,652 property?
If yes, proceed to the next question.
If no, do not purchase. The FMR must be sufficient to cover all costs associated with the property including mortgage payments, maintenance, and other expenses.
2) How does the market rent of $579 compare to the FMR?
If market rent is below FMR, consider the potential for higher rental income if you can qualify for Section 8 tenants. This scenario presents an opportunity to increase profitability compared to market-rate rentals.
If market rent is equal to or above FMR, it might be challenging to find tenants willing to pay the FMR rate when market rates are lower. In this case, your rental income would likely be capped at the market rate of $579.
3) Is there enough demand with 10.2% of the population being renters and the unknown days on the market (DOM) indicating a potentially slow-moving market?
If the demand is strong despite the low percentage of renters, proceed. However, the lack of data on DOM makes it difficult to assess the speed at which properties are rented out. Additional research into the local rental market trends is recommended.
If demand is weak, do not purchase. With only 10.2% of the population renting, the pool of potential Section 8 tenants may be too small to ensure steady occupancy and income.
The decision to invest in ZIP 70591 hinges on these factors. Ensure that the FMR can support the financial obligations of the property. Assess whether the difference between FMR and market rent provides a competitive edge. Finally, evaluate the local rental market's strength to confirm sufficient demand for Section 8 units.
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.