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 | $1,120 |
| 1 Bedroom | $1,130 |
| 2 Bedrooms | $1,480 |
| 3 Bedrooms | $1,760 |
| 4 Bedrooms | $2,060 |
| 5 Bedrooms | $2,390 |
| 6 Bedrooms | $2,677 |
| 7 Bedrooms | $2,891 |
| 8 Bedrooms | $3,036 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,760 | $223,759 | 0.79% | D |
| 4BR | $2,060 | $259,779 | 0.79% | D |
U.S. Census Bureau data (2024)
The ZIP code 70665 is situated in a suburban neighborhood characterized by a relatively low percentage of renters at 17.8%. This suggests that the area is predominantly owner-occupied, with a median home value of $231,271 and a median household income of $86,573, indicating a middle to upper-middle class community. The population size of 13,222 supports a stable local economy but also implies limited rental demand.
Moving into the specifics of rent economics, the Fair Market Rent (FMR) for ZIP 70665 in fiscal year 2024 is set at $1370. This is slightly below the reported market rent of $1,407 according to the Census American Community Survey (ACS). This discrepancy means that landlords participating in the Section 8 program could see a small reduction in rental income compared to market rates, though the difference is minimal.
In evaluating whether this ZIP code suits a hands-off voucher operator or a hands-on value-add buyer, it's important to consider the characteristics of the area. Given the modest gap between the FMR and market rent, along with the lower percentage of renters, hands-off operators might find the area less attractive due to the potential for reduced occupancy rates and higher maintenance costs associated with a smaller pool of tenants. On the other hand, value-add buyers could benefit from the opportunity to improve properties and potentially command higher rents, though they would need to be prepared for a market where rental demand is not as robust as in more densely populated areas.
To conclude, ZIP 70665 offers a stable environment for real estate investment, with a slight advantage for those willing to actively manage their properties and enhance their value. The economic profile of the residents suggests a reliable tenant base, but the limited rental market indicates that hands-on management strategies will likely yield better returns than a purely passive approach.
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.