Location: Lake Charles, LA | Metro: Lake Charles, LA HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,040 |
| 1 Bedroom | $1,050 |
| 2 Bedrooms | $1,370 |
| 3 Bedrooms | $1,630 |
| 4 Bedrooms | $1,910 |
| 5 Bedrooms | $2,216 |
| 6 Bedrooms | $2,482 |
| 7 Bedrooms | $2,681 |
| 8 Bedrooms | $2,815 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,630 | $371,292 | 0.44% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 70645 in the Lake Charles, LA HUD Metro FMR area reveals several key points for potential real estate investments.
The rent math does not work favorably in this ZIP code. The Fair Market Rent (FMR) for FY 2024 is set at $1240, but without specific data on market rent, it's challenging to determine if properties can be rented out at a profit above this benchmark. This uncertainty could indicate that market rents are either too low or not significantly higher than the FMR, which would reduce profitability for landlords.
Acquisition affordability is somewhat favorable, with a median home value of $245,680. However, the lack of data on Days on Market (DOM) and the percentage of homes needing price cuts suggests a potentially less active or competitive market, which might not support quick sales or high resale values. Landlords should proceed cautiously, considering the possibility of longer holding periods or lower-than-expected returns on investment.
Tenant demand is limited in ZIP 70645. With a total population of 899 and only 7.3% of residents being renters, the pool of potential tenants is small. This could make it difficult to fill vacancies quickly and sustainably, especially given the relatively high median home value compared to the FMR. Landlords should expect competition for tenants and possibly need to offer amenities or services that attract and retain a smaller number of interested renters.
Verdict: Investing in ZIP 70645 presents challenges due to limited tenant demand and uncertain market rents. While the median home value offers an entry point into the market, the small rental population and lack of detailed market data suggest that returns may be modest and require careful management to ensure occupancy and profitability. Landlords must be prepared for a niche market with fewer opportunities for high-volume rental income.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.