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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,360 | $269,131 | 0.51% | F |
U.S. Census Bureau data (2024)
The classification of ZIP code 70719 hinges significantly on the balance between rental yield and market stability. With a Fair Market Rent (FMR) of $1,200 for the fiscal year 2024, compared to the market rent of $1,097, there is an opportunity for higher yields if properties can be leased at FMR rates. The median home value stands at $262,316, which suggests that while the potential for high returns exists, it must be weighed against the cost of investment.
On the stability axis, the data indicates a slightly less secure environment. Only 19.3% of residents are renters, which is a relatively low percentage. This could imply that there is less demand for rental properties, potentially leading to longer vacancy periods. However, the average daily days on market (DOM) is not available, which leaves us without crucial information about how quickly homes are rented out. The median household income of $105,522 offers some assurance regarding the financial capability of the residents, but the low percentage of renters still poses a risk.
Given these factors, ZIP 70719 does not fit neatly into either a high-yield/low-stability 'flip-style' market or a steady-cashflow zone. Instead, it represents a middle-ground scenario where the potential for decent rental yields exists, but the market stability is compromised by the low proportion of renters. Landlords and small-portfolio investors should proceed with caution, ensuring they have a solid understanding of the local rental market dynamics before committing to investments.
To summarize, the key figures driving this assessment are:
This analysis reveals a market that is neither highly speculative nor entirely stable, necessitating a careful approach to investment.
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.