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 frame ZIP 70747 from the renter's perspective, we must first acknowledge the limited data available regarding the median income and market rate rents. However, with the known Fair Market Rent (FMR) set at $1320 for fiscal year 2024, we can infer some key points about affordability and competition.
The FMR of $1320 represents the maximum amount that housing authorities will pay on behalf of a tenant receiving a voucher. Given that the median income for the area is not provided, it is challenging to determine the average renter's ability to cover market rates beyond this figure. But considering the population size of 599 and a rental occupancy rate of 33.7%, there are approximately 202 renters in ZIP 70747.
The affordability gap between the voucher payment standard and the actual market rate rents is significant. If the market rate exceeds $1320, which is likely given the typical disparity between FMR and market rates, tenants would need to contribute additional funds from their own pockets. This means that landlords who accept vouchers might find themselves with less competitive rental income compared to those who rely on cash-paying tenants who can afford higher rents.
For landlords evaluating their strategy, the decision to accept vouchers versus cash-paying tenants hinges on the local rental market dynamics. Accepting vouchers ensures a steady stream of rental income but at a fixed rate that may not reflect the true market value. Cash-paying tenants, if they exist in sufficient numbers, can offer higher rents, potentially leading to greater profitability. However, landlords should also consider the stability that voucher tenants provide, as the government guarantees timely payments.
The takeaway for landlords is to assess the balance between voucher tenants and cash-paying tenants carefully. In ZIP 70747, where the market rate is unknown but likely above the FMR, landlords should weigh the benefits of guaranteed payments against the potential for higher rental incomes from cash-paying tenants. Given the small population and relatively low number of renters, competition for both types of tenants could be fierce, making it crucial to understand the local market thoroughly before deciding on a rental strategy.
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.