Location: Baton Rouge, 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 | $230,281 | 0.59% | F |
| 4BR | $1,750 | $351,226 | 0.5% | F |
U.S. Census Bureau data (2024)
The potential risks for investing in Section 8 properties in ZIP code 70767 are significant and must be carefully considered. First, tenant turnover can be a major issue due to the disparity between the market rent of $845 and the Fair Market Rent (FMR) of $1190 for FY 2024. Landlords may find it difficult to retain tenants who are accustomed to receiving the higher FMR subsidy once their lease term ends.
Vacancy exposure is another concern, as the days on market (DOM) data is currently unavailable. This makes it challenging to predict how long a property might remain vacant between tenants, which could impact cash flow.
Deferred maintenance is also a risk factor, especially when considering the typical home value of $214,014 and the median income of $68,384. The relatively low median income suggests that tenants may struggle to cover maintenance costs, leading to potential neglect of the property over time. Landlords should be prepared to invest in regular upkeep to avoid costly repairs down the line.
However, these risks must be weighed against the high renter share in the area, which stands at 26.3%. High renter density typically translates into a robust demand for rental housing, including units covered by Section 8 vouchers. This demand can provide a steady stream of qualified tenants, reducing the likelihood of prolonged vacancies.
In conclusion, the investment in Section 8 properties in ZIP 70767 carries moderate risk for a first-time Section 8 landlord, given the balance of challenges and opportunities present in the local market.
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.