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 | $1,230 |
| 1 Bedroom | $1,260 |
| 2 Bedrooms | $1,430 |
| 3 Bedrooms | $1,810 |
| 4 Bedrooms | $2,290 |
| 5 Bedrooms | $2,656 |
| 6 Bedrooms | $2,975 |
| 7 Bedrooms | $3,213 |
| 8 Bedrooms | $3,374 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,430 | $161,910 | 0.88% | C |
| 3BR | $1,810 | $254,532 | 0.71% | D |
| 4BR | $2,290 | $329,690 | 0.69% | D |
| 5BR | $2,656 | $449,244 | 0.59% | F |
U.S. Census Bureau data (2024)
Zachary, LA, with ZIP code 70791, is a suburban neighborhood situated in the heart of the state. The area has a total population of 30,385 residents, with 17.6% being renters. This indicates a primarily owner-occupied community where rental properties play a significant but smaller role. The median household income in Zachary stands at $78,263, reflecting a middle-class to upper-middle-class demographic. Median home values are notably high at $268,142, suggesting that homeownership is both valued and attainable within the community.
Moving into the economic analysis of rental properties, the Fair Market Rent (FMR) for the zip code for fiscal year 2024 is set at $1,330. This figure represents the benchmark for housing costs that are considered reasonable for low-income families receiving assistance through the Section 8 program. In contrast, the market rent, as measured by the Zillow Observed Rent Index (ZORI), is $1,591. This difference highlights an opportunity for landlords and small-portfolio investors who can offer quality rental units at or below the FMR while still benefiting from the higher market rates.
The place fits well for a hands-off voucher operator due to the relatively high median income and home values, which suggest a stable local economy. However, it also offers potential for a hands-on value-add buyer who could improve rental properties to command rents closer to the market rate. Given the 17.6% rental rate, there is room for growth in the rental market, making Zachary, LA a viable investment location for those looking to capitalize on the demand for affordable housing.
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.