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 | $1,040 |
| 1 Bedroom | $1,070 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,530 |
| 4 Bedrooms | $1,940 |
| 5 Bedrooms | $2,250 |
| 6 Bedrooms | $2,520 |
| 7 Bedrooms | $2,722 |
| 8 Bedrooms | $2,858 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,210 | $171,758 | 0.7% | D |
| 3BR | $1,530 | $235,739 | 0.65% | D |
| 4BR | $1,940 | $295,725 | 0.66% | D |
| 5BR | $2,250 | $359,895 | 0.63% | D |
U.S. Census Bureau data (2024)
Denham Springs, ZIP code 70726, is a bedroom community straddling the Amite River, characterized by a blend of post-flood rebuilds and newer suburban developments. The area maintains a small-town feel with convenient access to the broader Baton Rouge metro. Major employers include the Livingston Parish Public School System, one of the region’s largest entities, which provides steady economic stability and anchors demand for family housing near its administrative offices and local campuses.
From a purely numerical standpoint, the market shows tight margins. The HUD Fair Market Rent (FMR) for a 2BR unit is $1,270, trailing the Zillow market rent of $1,400 by a gap of $130 per month. With a median home value of $251,621 and a specific median 2BR sale price of $175,638, acquisition costs are moderate. However, properties sit on the market for a median of 67 days, suggesting a pace that is neither rapid nor stagnant. Voucher tenants using the full FMR amount will generate slightly less gross income than market-rate tenants.
Demand is underpinned by solid fundamentals; the area’s 27.0% renter share combined with a median household income of $78,621 indicates a population with the ability to pay, but also a clear need for quality rentals. The local public schools are generally rated above average, which continues to attract families seeking the stability of the Livingston Parish district without the premium of East Baton Rouge Parish taxes. This educational draw supports consistent occupancy levels for well-maintained units.
The Section 8 verdict here leans toward stability and long-term holding rather than aggressive immediate cashflow. While the $130 negative gap between FMR and market rent is a consideration, the relatively high median income suggests a tenant base that is likely to maintain properties well. For investors buying at the median 2BR price of $175,638, the play is steady appreciation in a family-centric suburb, utilizing the voucher program to minimize vacancy risk rather than to maximize monthly yield.
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.