Location: Baton Rouge, LA | Metro: Baton Rouge, 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 | $980 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,430 |
| 4 Bedrooms | $1,810 |
| 5 Bedrooms | $2,100 |
| 6 Bedrooms | $2,352 |
| 7 Bedrooms | $2,540 |
| 8 Bedrooms | $2,667 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,430 | $242,504 | 0.59% | F |
| 4BR | $1,810 | $318,627 | 0.57% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP code 70706 does not work favorably for landlords. The Fair Market Rent (FMR) set at $1410 for FY 2024 is higher than the actual market rent of $1,105 as reported by the Census ACS. This discrepancy means that landlords may struggle to charge the FMR without facing vacancy issues.
Acquisition in this area is relatively affordable, with a median home value of $267,713. The days on market (DOM) average of 38 days indicates a quick turnover for properties, which can be beneficial for investors looking to purchase quickly. Additionally, only 0.3% of homes have been listed with a price cut, suggesting that most homes sell at their initial asking price, making it a stable market for acquisitions.
Tenant demand is limited in ZIP 70706. With a population of 21,833, only 6.5% are renters, translating to approximately 1,420 potential tenants. This low renter share suggests that competition among rental properties could be high, potentially leading to lower occupancy rates or reduced rental income if landlords do not adjust their pricing strategies.
Verdict: Despite the affordability of acquisitions and the stability indicated by the low price-cut share, the rent math in ZIP 70706 is not favorable due to the disparity between the FMR and the actual market rent. Furthermore, the limited tenant demand poses a challenge for maintaining occupancy. Landlords should consider adjusting their rents to align with the market rate and be prepared for potential competition for tenants.
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.