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 | $1,240 |
| 1 Bedroom | $1,270 |
| 2 Bedrooms | $1,440 |
| 3 Bedrooms | $1,820 |
| 4 Bedrooms | $2,300 |
| 5 Bedrooms | $2,668 |
| 6 Bedrooms | $2,988 |
| 7 Bedrooms | $3,227 |
| 8 Bedrooms | $3,388 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,820 | $266,305 | 0.68% | D |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in ZIP 70770 through Section 8 are significant. First, consider tenant turnover. Market rents are not available, but the Fair Market Rent (FMR) for ZIP 70770 is set at $1440 for FY 2024. This figure represents the maximum amount that can be charged for a Section 8 rental, which might not cover the full market value, leading to lower returns on investment.
Vacancy exposure is another concern. The Days on Market (DOM) is not available, which makes it difficult to predict how long properties might remain vacant between tenants. However, the typical home value in ZIP 70770 is $253,844, while the median income is only $92,311. This substantial gap between home values and median income suggests that many residents may struggle to afford market-rate housing, increasing the likelihood of extended vacancy periods if the property is not in high demand due to its location or condition.
Deferred maintenance is also a risk. With a median income significantly lower than the typical home value, landlords may face challenges in maintaining properties to the standards required by Section 8 programs. Tenants with limited financial resources might be less inclined to report maintenance issues promptly, leading to potential neglect over time.
However, these risks must be weighed against the high concentration of renters in ZIP 70770. The renter share is 3.7%, indicating a dense population of potential voucher holders. High renter density typically translates into robust demand for affordable housing, which can mitigate the risks associated with vacancy and turnover. Given the availability of Section 8 vouchers and the likelihood of finding qualified tenants, the investment environment remains favorable despite the aforementioned challenges.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.