Location: Baton Rouge, LA | Metro: Baton Rouge, LA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $960 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,780 |
| 5 Bedrooms | $2,065 |
| 6 Bedrooms | $2,313 |
| 7 Bedrooms | $2,498 |
| 8 Bedrooms | $2,623 |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP code 70775 for Section 8 purposes, follow this decision tree:
1) Does the Fair Market Rent (FMR) of $1,180 cover the debt service on a property valued at $379,117?
Yes: The FMR of $1,180 is sufficient to clear the debt service on a property costing $379,117. This means that the rental income generated from a Section 8 tenant will meet your financial obligations associated with owning the property.
No: If the FMR does not cover the debt service, then purchasing a property in ZIP 70775 for Section 8 purposes would be financially unwise. In this case, the rental income would not be enough to meet your mortgage payments and other financial responsibilities.
2) How does the market rent of $1,066 compare to the FMR?
Market Rent Below FMR: At $1,066, the market rent is below the FMR of $1,180. This indicates that Section 8 tenants can pay higher rents compared to what non-subsidized tenants might offer, making it a favorable option for landlords who want to maximize their rental income.
Market Rent Equal to or Above FMR: If the market rent were equal to or above the FMR, then landlords would need to consider whether they prefer the stability of Section 8 tenants over the potential higher rents from market-rate tenants. However, based on the data, this scenario does not apply to ZIP 70775.
3) Is there sufficient demand with 21.7% of residents being renters and an unknown number of days on the market (DOM)?
It Depends: With 21.7% of residents renting, there is a moderate level of demand for rental properties. However, the lack of data on the average days on the market makes it difficult to assess how quickly properties are rented out. If the DOM is low, indicating quick turnover, this could suggest strong demand despite the moderate percentage of renters. Conversely, a high DOM might indicate weaker demand.
Based on the provided data, the FMR of $1,180 does cover the debt service on a property valued at $379,117, and the market rent is below the FMR, making Section 8 tenants potentially more lucrative than market-rate tenants. However, the demand analysis requires additional information to make a definitive recommendation.
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.