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 |
|---|---|---|---|---|
| 1BR | $960 | $76,215 | 1.26% | A |
| 2BR | $1,090 | $93,985 | 1.16% | B |
| 3BR | $1,360 | $113,498 | 1.2% | B |
U.S. Census Bureau data (2024)
The potential pitfalls for Section 8 landlords in ZIP code 70802, located in Baton Rouge, LA, include significant tenant turnover. The market rent for the area stands at $1,155, whereas the Fair Market Rent (FMR) for FY 2024 is set at $1,110. This discrepancy suggests that tenants who rely on vouchers might frequently move to find more affordable housing, leading to higher vacancy rates. Additionally, the vacancy exposure is heightened due to the lack of data on days on market (DOM), which indicates an unpredictable rental market. Deferred maintenance is another concern, as the typical home value in the area is $72,378, while the median household income is only $34,458. This income disparity means that landlords may face challenges in maintaining properties to the required standards without incurring substantial costs.
However, these risks must be weighed against the high renter share in ZIP 70802, which is 69.1%. A large proportion of renters typically translates into higher demand for rental properties, including those accepting Section 8 vouchers. This strong demand can mitigate some of the risks associated with tenant turnover and vacancy exposure, making it easier for landlords to find and retain tenants.
In conclusion, the verdict for a first-time Section 8 landlord in ZIP 70802 is moderate risk. While there are significant challenges related to tenant turnover and property maintenance, the high renter share provides a buffer that can help manage these issues effectively.
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.