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 | $930 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,750 |
| 5 Bedrooms | $2,030 |
| 6 Bedrooms | $2,274 |
| 7 Bedrooms | $2,456 |
| 8 Bedrooms | $2,579 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,360 | $380,570 | 0.36% | F |
U.S. Census Bureau data (2024)
The median income in ZIP code 70783 stands at $103,583, positioning it as a relatively affluent area. However, when considering the market rate rent of $1,190, which is derived from Census ACS data, the affordability becomes less straightforward. For context, the Fair Market Rent (FMR) as set by HUD for this zip code in fiscal year 2024 is $1,220. This means that even slightly above the market rate, the FMR is still within reach for many households.
Given the median income, a household would typically allocate around 30% of their income towards housing costs, which equates to approximately $2,600 per month. This suggests that the current market rate rent of $1,190 is affordable for most residents, leaving them with a significant amount of disposable income after covering housing expenses.
However, the affordability gap is also influenced by the proportion of renters and the total population. In ZIP 70783, only 12.9% of the 2,804 residents are renters. This indicates a limited pool of potential tenants, which could intensify competition among landlords. The scarcity of renters might lead to a situation where landlords have to offer competitive incentives to attract tenants, thereby potentially reducing profit margins.
When comparing cash-paying tenants to those who use Section 8 vouchers, landlords must consider the stability and predictability of voucher payments versus the higher but variable rates of cash-paying tenants. The FMR of $1,220 is close to the market rate, making voucher tenants a viable option without sacrificing too much on rental income. However, landlords should be aware that voucher payments come with government oversight and regulations, which could affect the flexibility and speed of managing their properties.
The takeaway for landlords is that while the market rate is affordable for many in ZIP 70783, the limited number of renters means competition will be fierce. Accepting Section 8 vouchers can provide a steady stream of income, but landlords should weigh this against the administrative requirements and the potential for attracting cash-paying tenants who might be willing to pay slightly above the market rate due to the area's overall affluence.
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.