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 | $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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,360 | $176,339 | 0.77% | D |
| 4BR | $1,750 | $231,452 | 0.76% | D |
U.S. Census Bureau data (2024)
A landlord considering investing in ZIP code 70714 for Section 8 properties must follow a structured decision-making process. The first step involves evaluating whether the Fair Market Rent (FMR) of $1250 can cover the debt service on a property valued at $180,682. To determine this, calculate the annual debt service and compare it to the annual income from the FMR. Assuming a typical mortgage rate, the monthly payment would likely exceed $1250, making it difficult to clear debt service solely based on the FMR. Therefore, the answer to the first question is No.
If the FMR does not clear debt service, the next question is irrelevant; however, for completeness, the second question is whether the market rent, represented by the ZORI of $1,136, is above, at, or below the FMR. Here, the ZORI is below the FMR, indicating that the market rent is lower than what the government will pay for a Section 8 voucher. This suggests that relying on market rents alone would be less profitable compared to renting to Section 8 tenants.
The third question addresses demand: do 24.3% of residents being renters combined with the number of days on the market (DOM), which is listed as N/A, indicate sufficient demand? With 24.3% of the population being renters, there is a moderate level of rental demand. However, the lack of DOM data makes it impossible to assess how quickly properties are rented out. In this scenario, the answer is It Depends. A high DOM would suggest low demand, whereas a low DOM would indicate high demand.
Decision Tree Summary:
In conclusion, while the market rent being below the FMR might attract Section 8 tenants, the inability to cover debt service with the FMR and the uncertain demand due to missing DOM data make ZIP 70714 a risky investment for landlords seeking to buy properties specifically for Section 8. Further investigation into local rental dynamics and property-specific financing options is recommended before proceeding with an investment decision.
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.