Location: St. James Parish, LA | Metro: St. James Parish, 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 | $870 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,620 |
| 4 Bedrooms | $1,760 |
| 5 Bedrooms | $2,042 |
| 6 Bedrooms | $2,287 |
| 7 Bedrooms | $2,470 |
| 8 Bedrooms | $2,594 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,620 | $151,614 | 1.07% | B |
U.S. Census Bureau data (2024)
The analysis for ZIP code 70723 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1330, while the Census ACS reports the market rent at $1542. This means there is a $212 difference, or approximately a 16% gap, between what voucher tenants can pay and the open-market rental rate.
Given that the FMR is lower than the market rent, landlords and small-portfolio investors should be aware of the financial implications of accepting housing vouchers. The cost of housing voucher tenants below open-market rates can impact profitability. In ZIP 70723, where only 5.5% of the population are renters, competition for tenants willing to pay the full market rate is relatively low. However, the median home value stands at $122,591 and the median income is $47,444, indicating a moderate economic environment.
The $212 shortfall per month could affect overall cash flow, especially when considering the long-term tenancy typical of voucher holders. To mitigate this, landlords might consider optimizing property management costs or increasing the efficiency of their rental operations. Alternatively, targeting a niche market or offering additional services that justify higher rents could help balance the discrepancy.
In summary, the gap between FMR and market rent in ZIP 70723 presents a challenge for landlords looking to maximize yields. While voucher tenants provide stable occupancy, the financial landscape suggests a need for strategic planning to ensure profitability aligns with the economic realities of the area.
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.