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 analysis for ZIP code 70732 in Louisiana reveals a significant gap between the Fair Market Rent (FMR) set by the U.S. Department of Housing and Urban Development and the actual market rent based on the American Community Survey (ACS). For fiscal year 2024, the FMR for ZIP 70732 is $1110. In contrast, the ACS indicates a market rent of $690. This represents a gap of $420, or approximately 61%, between the FMR and the market rent.
The FMR exceeds the market rent, making ZIP 70732 a prime location for voucher tenants. Landlords and small-portfolio investors should capitalize on this yield play. With 16.8% of residents renting, there is a stable demand for rental properties. The median income of $68,636 suggests that many local residents would benefit from the higher subsidy provided by the Housing Choice Voucher program.
The high subsidy levels mean that landlords can charge rents closer to the FMR while still ensuring affordability for tenants. This scenario allows for better cash flow and potentially higher returns on investment compared to charging open-market rates. However, it's important to note that the median home value is not available, indicating limited data on homeownership in the area.
In summary, the substantial difference between the FMR and market rent in ZIP 70732 presents a unique opportunity for landlords and investors. By accepting voucher tenants, they can achieve yields that surpass typical market rates, thereby optimizing their investment performance.
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.