Section 8 Fair Market Rent (FMR) for ZIP 70737 - 2027

Investment Score for ZIP 70737

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,310
1 Bedroom	$1,340
2 Bedrooms	$1,520
3 Bedrooms	$1,930
4 Bedrooms	$2,440
5 Bedrooms	$2,830
6 Bedrooms	$3,170
7 Bedrooms	$3,424
8 Bedrooms	$3,595

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,520	$171,983	0.88%	C
3BR	$1,930	$269,515	0.72%	D
4BR	$2,440	$365,827	0.67%	D
5BR	$2,830	$477,341	0.59%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 70737 (Gonzales, LA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 70737 is set by HUD for 2026 and varies based on the number of bedrooms. For a two-bedroom unit, the FMR is $1550, which represents 22.5% of the median household income in the area ($82,521). This indicates that the rent for a two-bedroom unit is relatively affordable compared to local incomes. However, the actual rental rates in the market need to be considered to understand how Section 8 voucher holders are constrained. According to the provided data, the Zillow median price for a two-bedroom home is $172,123. The price-to-FMR ratio is 9.3x, suggesting that the purchase price of a two-bedroom home is significantly higher than its rental value. This ratio implies that the cost of buying a property is much greater than what it would generate in rental income under the FMR guidelines. #### Affordability & Renter Profile In ZIP code 70737, approximately 22.0% of the population are renters, indicating a moderate demand for rental properties. With a total population of 49,084, this translates to about 10,800 renters. The occupancy rate stands at 92.3%, suggesting that the rental market is quite tight, with limited availability of units. Given the median household income of $82,521, the average renter in this area likely has a stable financial situation, but the high price-to-FMR ratio might still make renting challenging for those relying solely on Section 8 vouchers. The FMR for a three-bedroom unit is $1950, which is 23.6% of the median income, making it slightly less affordable. For a four-bedroom unit, the FMR is $2500, representing 30.3% of the median income, which could be a significant burden for some households. #### Investor Angle From an investor’s perspective, the key question is whether the rental market supports cash flow-positive investments at the FMR levels. Given the FMR for a two-bedroom unit is $1550, this is the baseline rent that investors should aim to achieve if they want to cater to Section 8 voucher holders. However, the price-to-FMR ratio of 9.3x suggests that purchasing a property is expensive relative to its rental income potential. To determine if this ZIP code is cash flow positive, we need to consider the typical expenses associated with owning a rental property. These include mortgage payments, property taxes, insurance, maintenance, and other operational costs. Assuming a mortgage rate of around 5%, a property purchased for $172,123 would have a monthly mortgage payment of approximately $840 (based on a 30-year fixed-rate mortgage). Property taxes in Ascension Parish are around 1.2%, so the annual tax would be $2065, translating to a monthly cost of roughly $172. Insurance and maintenance costs can vary widely, but a conservative estimate might be $100 per month for both combined. This brings the total monthly expenses to around $1112, leaving a net cash flow of $438 per month for a two-bedroom unit rented at FMR. While this net cash flow is positive, it is important to note that it is relatively low, especially considering the risk factors involved in rental management. Additionally, the high purchase price relative to the rental income means that the return on investment (ROI) is modest, which could impact the overall attractiveness of the market for investors. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Investors should focus on smaller units such as one-bedroom or studio apartments, where the FMR is lower ($1370 and $1330 respectively). This will help ensure better cash flow and reduce the risk of vacancy due to the tight rental market. 2. **Consider Multi-Family Properties**: Multi-family properties can offer economies of scale and potentially higher cash flows. If an investor can acquire a multi-unit building, the aggregate rental income could be more substantial and offset the high purchase price. 3. **Explore Non-Section 8 Rental Opportunities**: Given the high price-to-FMR ratio, investors might find it more profitable to target non-Section 8 tenants who are willing to pay above the FMR. This could involve offering amenities or upgrades that justify higher rents. #### Bottom Line For Section 8-focused investors, the market in ZIP code 70737 presents a mixed picture. While the rental market is tight and there is a steady demand for housing, the high purchase price relative to the rental income makes it a challenging environment. The bottom line recommendation is to **Skip** this ZIP code for now unless you can find properties that offer a better balance between purchase price and rental income. If you do decide to invest, focus on smaller units and consider diversifying into non-Section 8 rental opportunities to improve profitability.

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.