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 classification of ZIP code 70755 hinges on analyzing both yield potential and market stability. Yield is assessed through the comparison of the Fair Market Rent (FMR) and the local market rent, while stability is gauged by tenant demographics and economic indicators.
On the yield axis, ZIP 70755 stands out with a FMR of $910 for the fiscal year 2024, significantly above the market rent of $619. This implies that properties eligible for Section 8 funding could command higher rents compared to the general market, enhancing profitability for landlords who qualify. However, the absence of home value data suggests limited insight into the capital appreciation potential, which is crucial for long-term investment strategies.
Moving to stability, the ZIP code presents a mixed picture. With only 13.2% of residents being renters, the demand for rental properties is relatively low, indicating a less stable rental market. The lack of data on days on market (DOM) further obscures the ease of property turnover. Yet, the median household income of $86,071 provides some reassurance regarding the financial health of tenants, potentially reducing the risk of non-payment.
Given these specifics, ZIP 70755 leans towards being a high-yield/low-stability market. The substantial gap between FMR and market rent points to significant earning potential for Section 8 properties. Conversely, the low percentage of renters and the unavailability of DOM data suggest a less robust and dynamic rental environment, which can be risky for short-term investments but might offer opportunities for those willing to navigate the complexities of the Section 8 program.
To summarize, the key figures driving this assessment are the FMR at $910 versus the market rent at $619, and the median household income of $86,071. These factors indicate a market that is ripe for high-yield returns but comes with inherent risks related to stability.
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.