Location: Hammond, 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 | $930 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,750 |
| 5 Bedrooms | $2,030 |
| 6 Bedrooms | $2,274 |
| 7 Bedrooms | $2,456 |
| 8 Bedrooms | $2,579 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,360 | $227,792 | 0.6% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 70711 reveals that the Fair Market Rent (FMR) set by HUD for FY 2024 is $940, while the market rent based on Census ACS data is $920. This indicates that properties in ZIP 70711 will cashflow at the FMR rate, providing a slight margin above the typical market rent.
To further analyze the investment potential, consider the median home value in the area, which stands at $235,252. The rent-to-price ratio can be calculated by dividing the annual market rent ($920 * 12 months = $11,040) by the median home value, resulting in approximately 4.69%. This suggests that rental income is relatively low compared to the value of homes, making it more advantageous to focus on cashflow rather than property appreciation.
Note that the data does not provide the median Days on Market (DOM) or the percentage of price cuts, which would typically help in understanding how quickly properties sell and whether there is significant downward pressure on home values. However, given the slight margin between the FMR and market rent, it is clear that cashflow is the primary benefit for Section 8 investors in this ZIP code.
The strongest investor angle in ZIP 70711 is cashflow, as the FMR exceeds the market rent, ensuring a steady stream of income without the need for premium units. This makes the area particularly attractive for landlords and small-portfolio investors looking to maximize their monthly returns.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.