Location: Iberville Parish, LA | Metro: Iberville Parish, 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 | $830 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,330 | $263,823 | 0.5% | F |
| 4BR | $1,540 | $382,289 | 0.4% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 70776 provides a clear picture of potential rental income versus market conditions. Based on the Fair Market Rent (FMR) for a 2-bedroom apartment set at $1140 annually, the implied gross yield for a property valued at $262,053 would be approximately 4.35%. This calculation is derived by taking the annualized FMR of $1140 and dividing it by the median home value of $262,053.
In contrast, using the market rent figure of $998 annually, the implied gross yield drops to about 3.81%. This lower yield reflects the current market rates as reported by the Census ACS data, indicating that properties in ZIP 70776 might not generate as much income when compared to the higher FMR set by Section 8 guidelines.
To determine which scenario is more realistic, we must consider the local rental market dynamics. With a renter density of 25.5%, it's evident that a significant portion of the population is looking for affordable housing options. However, the lack of data on Days on Market (DOM) suggests that there might be challenges in quickly leasing out properties at either of these rates.
Given the higher implied gross yield of 4.35% under the Section 8 FMR, this scenario appears more favorable for landlords and small-portfolio investors. The higher rental rate can provide a better return on investment, especially considering the relatively high renter density in the area. Nevertheless, it's crucial to recognize that the actual performance could vary based on factors such as tenant preferences, competition from other rental properties, and the availability of Section 8 vouchers.
Investors should also consider the stability and predictability of Section 8 rents compared to fluctuating market rates. While the market rent scenario offers a more conservative gross yield of 3.81%, it aligns more closely with the current economic realities faced by renters in ZIP 70776. This scenario might be more practical for those who prioritize steady cash flow over potentially higher returns.
In summary, the Section 8 cap rate presents a higher gross yield at 4.35%, whereas the market rent scenario offers a more modest yield of 3.81%. Investors must weigh these figures against the local rental market conditions and their own investment goals to decide which path to take.
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.