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 | $1,050 |
| 1 Bedroom | $1,080 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,550 |
| 4 Bedrooms | $1,960 |
| 5 Bedrooms | $2,274 |
| 6 Bedrooms | $2,547 |
| 7 Bedrooms | $2,751 |
| 8 Bedrooms | $2,889 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,550 | $265,107 | 0.58% | F |
| 4BR | $1,960 | $342,129 | 0.57% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP code 70778 might raise several concerns regarding the viability of renting properties through the Section 8 program. Here are some common objections and the data to address them.
Objection 1: Will Fair Market Rent (FMR) of $1200 cover the mortgage on a $277,395 home?
The FMR of $1200 per month must be compared against the average mortgage payment for homes priced around $277,395. To provide a clear answer, we need to calculate the expected monthly mortgage payment based on current interest rates and typical loan terms. However, without specifying the exact interest rate and down payment amount, it's challenging to give a definitive figure. Generally, a 30-year fixed-rate mortgage with a 4% interest rate and a 20% down payment on a $277,395 home would result in a monthly mortgage payment of approximately $1,100. This suggests that the FMR could indeed cover the mortgage, leaving a margin for maintenance and other expenses.
Objection 2: Is there enough renter demand at 8.6%?
The 8.6% represents the percentage of households participating in the Section 8 Housing Choice Voucher Program. While this figure is relatively low, it doesn't necessarily indicate a lack of demand. In ZIP 70778, the total number of households is critical to understanding the actual demand. For instance, if there are 1,000 households, then 8.6% translates to 86 households participating in the program. This number should be sufficient to support a few rental units. Additionally, the demand for affordable housing can fluctuate based on local economic conditions and the availability of alternative housing options. The data does not provide a complete picture of overall renter demand beyond Section 8 participation.
Objection 3: Will vouchers keep pace with $1,344 market rents?
The key concern here is whether the voucher amounts will match or exceed the $1,344 market rent. According to HUD guidelines, voucher payments are adjusted annually based on the FMR. If the FMR for ZIP 70778 increases in line with market rents, then voucher holders should have the means to cover higher rents. However, if the FMR remains stable while market rents rise, landlords may find themselves absorbing the difference. The data does not explicitly state the trend of FMR adjustments versus market rent increases, so caution is advised when making long-term projections.
In summary, while the data suggests that the FMR can cover the mortgage on a home valued at $277,395, the low participation rate of 8.6% requires further investigation into the total household count to assess the adequacy of demand. Lastly, the alignment between voucher payments and market rents is subject to annual adjustments, which should be monitored closely to ensure financial stability.
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.