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 | $282,459 | 0.48% | F |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in ZIP 70722 through the Section 8 program are significant and must be carefully considered. Tenant turnover is a critical issue, with the market rent at $1,069 being notably higher than the Fair Market Rent (FMR) of $910 for FY 2024. This disparity can lead to frequent changes in occupancy, increasing administrative burdens and costs associated with screening and moving new tenants in. Additionally, the vacancy exposure is heightened due to an unspecified number of days on the market (DOM), which suggests a lack of reliable data on how quickly properties are rented out. Given the typical home value of $224,602 and a median income of $76,144, there is a substantial risk of deferred maintenance. Landlords may struggle to maintain properties up to standard without overrelying on the limited funds available under the Section 8 program.
However, these risks are tempered by the high concentration of renters in the area, with 16.5% of residents classified as renters. High renter density typically correlates with increased demand for housing vouchers, which can stabilize the rental market and provide a steady stream of tenants. Despite the challenges, the presence of a large number of potential voucher holders can mitigate some of the financial uncertainties faced by landlords.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.