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)
The ZIP code 70729, located within the Baton Rouge, LA HUD Metro FMR Area, presents a unique opportunity for inclusion in a Section 8 portfolio strategy. This area stands out as a potential cash-flow anchor due to the significant spread between the Fair Market Rent (FMR) set by HUD for fiscal year 2024 and the current market conditions.
In ZIP 70729, the FMR for a one-bedroom apartment is set at $1200. However, the market rent data for this specific ZIP code is currently unavailable, which suggests that the HUD-set FMR could be lower than what the market can bear. This discrepancy allows landlords to leverage the higher market rents while still participating in the Section 8 program, ensuring a steady stream of rental income. The guaranteed payment structure of Section 8, combined with potentially higher market rents, makes this ZIP code a reliable component of a cash-flow focused investment strategy.
Moreover, the median income in ZIP 70729 is reported at $109,653, indicating a relatively affluent neighborhood. Despite this, only 6.7% of the residents are renters, suggesting a smaller pool of potential Section 8 tenants compared to other areas. Nevertheless, the high median income supports the stability of the housing market and the likelihood of timely rent payments from those who do qualify for the Section 8 program.
Given these factors, ZIP 70729 should be considered primarily as a cash-flow anchor within a Section 8 portfolio strategy. It provides a secure and predictable income source, backed by the government's payment guarantee, while also allowing landlords to potentially charge market rates above the FMR, thus maximizing their cash flow. This approach is particularly beneficial for landlords and small-portfolio investors looking to balance risk and reward, ensuring a stable financial foundation for their investment properties.
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.