Location: Jefferson Davis Parish, LA | Metro: Jefferson Davis Parish, LA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $780 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,490 |
| 5 Bedrooms | $1,728 |
| 6 Bedrooms | $1,935 |
| 7 Bedrooms | $2,090 |
| 8 Bedrooms | $2,195 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 70650 provides insights into potential investment returns for landlords and small-portfolio investors. The Federal Market Rent (FMR) for a two-bedroom apartment in the metro area for fiscal year 2026 is set at an annualized rate of $12,480 ($1,040 per month).
Given that the median home value and market rent figures are currently unavailable, we can only estimate based on the FMR. However, it's crucial to consider the local rental market dynamics, including the 39.5% renter density and the days on market (DOM), which is also not available.
In the scenario where the FMR is the primary rental income, the implied gross yield can be calculated using the FMR figure. Assuming a property value of $250,000, which is a reasonable estimate for the area, the gross yield would be approximately 4.99%. This is derived by dividing the annual rental income ($12,480) by the property value ($250,000).
Without the market rent and median home value, it's challenging to provide a direct comparison. However, if the market rent were higher than the FMR, the gross yield would naturally increase. For example, if the market rent for a similar property was $1,500 per month, the annual rental income would be $18,000, leading to a gross yield of 7.2% when applied to the same $250,000 property value.
The 39.5% renter density suggests a moderately strong demand for rentals, but without knowing the DOM, it's impossible to gauge how quickly properties might be rented out under Section 8 versus the open market. A lower DOM would indicate quicker turnover and potentially higher occupancy rates, which could favor Section 8 investments.
Based on the available data, the FMR scenario presents a conservative gross yield, while the hypothetical market rent scenario offers a more optimistic outlook. Investors should weigh these figures against their own cost structures and risk tolerances to determine which scenario aligns better with their investment goals.
The key takeaway is that while the FMR provides a stable income stream, market rents, when higher, can offer significantly improved yields. Given the moderate renter density, securing a property at a lower price point could make the FMR scenario more attractive, but market conditions must be closely monitored to ensure competitiveness.
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.