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 | $1,150 |
| 1 Bedroom | $1,170 |
| 2 Bedrooms | $1,330 |
| 3 Bedrooms | $1,690 |
| 4 Bedrooms | $2,130 |
| 5 Bedrooms | $2,471 |
| 6 Bedrooms | $2,768 |
| 7 Bedrooms | $2,989 |
| 8 Bedrooms | $3,138 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,690 | $264,538 | 0.64% | D |
U.S. Census Bureau data (2024)
The HUD Fair Market Rent (FMR) for ZIP code 70777 in the Baton Rouge, LA area for fiscal year 2024 is set at $1,160. This figure represents the maximum amount that a landlord can charge a tenant participating in the Section 8 Housing Choice Voucher program. In comparison, the market rent as reported by the Census American Community Survey (ACS) stands at $1,579, indicating that voucher tenants would typically generate a marginal cash flow for landlords. The gap between the HUD FMR and the actual market rent suggests that landlords might need to offer slightly above-average units to attract tenants willing to pay the higher market rate.
To further analyze the investment potential, consider the median home value in the area, which is $237,523. Using this figure, we can calculate the rent-to-price ratio. By dividing the market rent of $1,579 by the median home value, we get a monthly rent-to-price ratio of approximately 0.66%, which translates to an annual ratio of roughly 7.92%. This ratio is indicative of the rental income one could expect relative to the property's value, suggesting a modest but steady return on investment for those focusing on rental properties.
Note that the data does not provide specific insights into the median days on market (DOM) or the percentage of price cuts shared among listings. However, these metrics can be crucial in understanding the local real estate market's liquidity and competitiveness. If such data were available, it would help investors gauge how quickly they can turn over their properties and the flexibility they might need when setting asking prices.
The strongest investor angle in ZIP 70777 appears to be stability. Given the consistent demand for affordable housing and the government-backed nature of Section 8 vouchers, landlords can expect a reliable stream of rental income, even if the cash flow is marginal compared to market rents. Stability is particularly important for small-portfolio investors who may prefer predictable returns over the riskier prospects of appreciation or high cash flow.
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.