Location: Allen Parish, LA | Metro: Allen Parish, LA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $660 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,170 |
| 4 Bedrooms | $1,380 |
| 5 Bedrooms | $1,601 |
| 6 Bedrooms | $1,793 |
| 7 Bedrooms | $1,936 |
| 8 Bedrooms | $2,033 |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $830 for ZIP 70644 will sufficiently cover the mortgage on a home. However, the median home value in ZIP 70644 is approximately $103,100, which is significantly lower than the national median of $244,900. This suggests that mortgage payments in this area could be manageable with the given FMR.
The second objection concerns the rental demand percentage of 13.3%. While this figure may seem low, it is important to note that the primary focus of the ZIP code is on homeownership, with a majority of households owning or having a mortgage. Therefore, the 13.3% represents the portion of the population that is renting, which is still a significant number of potential tenants.
Regarding the third objection, there is no specific data available on how well housing vouchers keep pace with market rents in ZIP 70644. However, the Housing Choice Voucher (HCV) data dashboard provided by HUD shows that voucher utilization rates can vary widely depending on the local housing agency's efficiency and the availability of funds. It is crucial for investors to monitor these rates and the local agency's performance to ensure that vouchers will continue to support rent levels in the future.
In conclusion, while the data does not provide a complete picture for all objections, it does suggest that the FMR of $830 is likely sufficient to cover mortgage payments given the low median home value. Additionally, the 13.3% rental demand percentage indicates a viable tenant pool, though further research into local housing agency performance and voucher utilization trends would be beneficial for long-term investment planning.
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.