Section 8 Fair Market Rent (FMR) for ZIP 70607 - 2027

Investment Score for ZIP 70607

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$900
1 Bedroom	$910
2 Bedrooms	$1,190
3 Bedrooms	$1,420
4 Bedrooms	$1,660
5 Bedrooms	$1,926
6 Bedrooms	$2,157
7 Bedrooms	$2,330
8 Bedrooms	$2,447

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,190	$135,230	0.88%	C
3BR	$1,420	$208,508	0.68%	D
4BR	$1,660	$264,118	0.63%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Based on the available data, ZIP 70607 in Lake Charles, LA, can be considered an appreciation play within a Section 8 portfolio strategy. The HUD Fair Market Rent (FMR) for FY 2024 is set at $1020, while the current market rent is slightly higher at $1,119. This indicates that the rental prices are relatively stable and slightly above the government-set standards, which is favorable for landlords participating in the Section 8 program.

The median home value in ZIP 70607 is $195,967, which is lower than the typical values seen in other parts of the state and nation. However, the data shows a price-cut share of only 0.2%, suggesting that there is little need for significant price adjustments in the local housing market. This low price-cut share, combined with the fact that the days on market (DOM) are not significantly long, points towards a robust local real estate market where properties sell relatively quickly at or near their asking price.

A key factor supporting the appreciation play thesis is the median income of $60,351. While this figure is not exceptionally high, it does indicate that residents have sufficient disposable income to potentially afford higher rents or property values in the future. Moreover, with a renter share of 33.5%, there is a notable portion of the population who are already accustomed to renting, making the area suitable for rental investments.

To further solidify this investment strategy, consider the following:

• Economic Stability: The local economy, driven by industries such as petrochemicals and tourism, provides a foundation for steady growth. This stability is crucial for long-term investment success.
• Government Support: The Section 8 program ensures a reliable stream of tenants and rent payments, reducing risk for landlords. The spread between the FMR and market rent suggests that landlords can maintain competitive rates without compromising on cash flow.
• Market Dynamics: The low price-cut share and quick sales indicate that the market is healthy and demand for housing is strong. This bodes well for future appreciation.

In conclusion, ZIP 70607 offers a promising opportunity for appreciation within a Section 8 portfolio strategy due to its stable rental market, low price-cut share, and economic conditions that support gradual growth in property values.

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.