Location: Baton Rouge, LA | Metro: Baton Rouge, LA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,460 |
| 1 Bedroom | $1,490 |
| 2 Bedrooms | $1,690 |
| 3 Bedrooms | $2,140 |
| 4 Bedrooms | $2,710 |
| 5 Bedrooms | $3,144 |
| 6 Bedrooms | $3,521 |
| 7 Bedrooms | $3,803 |
| 8 Bedrooms | $3,993 |
U.S. Census Bureau data (2024)
In ZIP code 70801, the Section 8 program operates under the Single Area Fair Market Rent (SAFMR) system, where the rate is specifically set for this ZIP code. For a two-bedroom apartment, the SAFMR for FY 2024 is $1,920. This is the maximum amount that a landlord can receive from the government for a Section 8 voucher tenant. However, the local market rent for a similar unit is lower at $1,680, according to the Census ACS.
The SAFMR does not guarantee full payment of the market rent. Here’s how it works: the tenant is responsible for paying approximately 30% of their adjusted income towards rent. If we assume an average adjusted income of $1,600 per month for a household in ZIP 70801, the tenant would pay around $480 towards rent. The remaining amount up to the SAFMR is covered by the government, but only up to the actual rent charged by the landlord.
Additionally, there are utility allowances that vary based on the size of the unit and the region. For a two-bedroom apartment in ZIP 70801, the utility allowance is typically around $300 per month. This allowance is also paid by the government directly to the landlord.
Therefore, if a landlord charges the local market rent of $1,680, the total reimbursement they would receive from the government would be the tenant’s contribution plus the utility allowance. In this scenario, the landlord would receive:
This means the landlord would need to cover the difference between the market rent and the reimbursement, which in this case is $900. This is the reimbursement gap that landlords should be aware of when considering a Section 8 tenant in ZIP 70801.
However, if the landlord charges less than the market rent, say $1,500, the reimbursement would still be calculated based on the tenant’s contribution and the utility allowance. In this case, the landlord would receive:
The reimbursement would then cover the entire rent of $1,500, leaving the landlord with a surplus of $20. Thus, landlords in ZIP 70801 can either accept a reimbursement gap or adjust their rent to capture a surplus, depending on their preference and financial situation.
Data Sources: FMR data from HUD (2027). 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.