Location: Iberville Parish, LA | Metro: Baton Rouge, LA HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,360 | $208,200 | 0.65% | D |
| 4BR | $1,750 | $304,203 | 0.58% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP 70764 might have several concerns regarding the feasibility of investing in properties under the Section 8 program. Here's a detailed look at those concerns based on the available data.
Objection 1: Will FMR $980 (zip FY 2024) cover the mortgage on a $160,232 home?
The Fair Market Rent (FMR) for ZIP 70764 is set at $980 per month for fiscal year 2024. To determine if this will sufficiently cover the mortgage on a home priced at $160,232, we need to consider the typical interest rates and loan terms. Assuming an average interest rate of 4.5% and a 30-year fixed-rate mortgage, the monthly payment would be approximately $785. This means that the FMR of $980 does cover the mortgage, leaving a surplus of $195 per month before accounting for other expenses such as property taxes, insurance, and maintenance.
Objection 2: Is there enough renter demand at 21.2%?
The rental vacancy rate in ZIP 70764 stands at 21.2%. This percentage indicates a relatively high vacancy rate, which could suggest a lack of demand. However, it's important to note that the Section 8 program targets low-income households, a demographic that often has a steady demand for affordable housing. The high vacancy rate might also indicate that the market is saturated with non-subsidized rentals, making subsidized units more attractive. While the data does not provide a direct measure of demand for Section 8 units, the presence of a significant number of low-income households in the area suggests there is a need for affordable housing options.
Objection 3: Will vouchers keep pace with $825 market rents?
The current market rent in ZIP 70764 is $825, slightly below the FMR of $980. Vouchers are adjusted annually based on changes in the local rental market, so they should theoretically keep pace with market rents. However, the data does not specify the exact amount of the voucher adjustments. It's crucial to monitor these adjustments closely, as they directly impact the profitability of Section 8 properties. If the voucher amounts do not increase in line with market rents, landlords may face challenges in covering all operating costs.
In summary, while the FMR of $980 is sufficient to cover the mortgage on a $160,232 home, the high vacancy rate raises questions about overall demand. Additionally, the success of keeping pace with market rents depends on the timely and adequate adjustment of voucher amounts, which requires close attention to annual changes.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.