Location: Baton Rouge, LA | Metro: Baton Rouge, LA HUD Metro FMR Area
| 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 |
U.S. Census Bureau data (2024)
To classify ZIP code 70725, we need to analyze its yield and stability based on the provided figures. The Fair Market Rent (FMR) for ZIP 70725 in fiscal year 2024 is $1290. This figure represents the average rent that a tenant would pay for a rental property in this area. The median home value in ZIP 70725 is $267,736, which provides a benchmark for investment costs.
On the yield axis, the FMR of $1290 suggests a relatively high potential for rental income compared to the median home value. For instance, if an investor purchases a property at the median home value, the monthly rental income could potentially cover a significant portion of the mortgage payment and provide a good return on investment. However, without market rent data, it's challenging to determine the exact yield, but the FMR does indicate a strong rental demand.
Moving to the stability axis, only partial data is available. We know that 15.6% of residents in ZIP 70725 are renters. This percentage is relatively low, suggesting that the majority of the population owns their homes. This ownership trend can contribute to market stability since homeowners are less likely to be displaced by economic downturns compared to renters. However, the lack of data on days-on-market (DOM) and median income limits our ability to fully assess stability. These metrics would help understand how quickly properties sell and the financial health of the local population, respectively.
Based on the available information, ZIP 70725 leans towards being a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The relatively high FMR compared to the median home value supports cashflow generation, while the high percentage of homeowners suggests some level of stability. To make a more precise classification, additional data on market rents, DOM, and income levels would be necessary.
Data Sources: FMR data from HUD (2027). 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.