Location: Baton Rouge, LA | Metro: Baton Rouge, LA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $990 |
| 1 Bedroom | $1,010 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,460 |
| 4 Bedrooms | $1,840 |
| 5 Bedrooms | $2,134 |
| 6 Bedrooms | $2,390 |
| 7 Bedrooms | $2,581 |
| 8 Bedrooms | $2,710 |
The economics of Section 8 in ZIP code 70804, located in Baton Rouge County, Louisiana, operate under specific guidelines that affect both landlords and tenants. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) for FY 2024 is set at $1280. This figure is crucial because it represents the maximum amount that the housing authority will pay towards a tenant's rent subsidy for this particular ZIP code.
A voucher payment is composed of two parts: the tenant contribution and the housing authority subsidy. The tenant is required to pay 30% of their adjusted income toward rent, which can include utilities. If the total rent exceeds the SAFMR, the landlord is responsible for the difference, making it essential to understand the financial implications clearly.
To illustrate, let’s assume a tenant’s adjusted income is $1000 per month. The tenant would contribute 30% of this amount, which is $300. The remaining $980 is covered by the housing authority, up to the SAFMR limit of $1280. Therefore, if the rent for a two-bedroom unit is $1280, the landlord receives the full SAFMR amount, with the tenant paying $300 and the housing authority covering $980.
If the market rent for a two-bedroom unit in ZIP 70804 were higher than the SAFMR, say $1500, the landlord would still only receive $1280 from the housing authority. In this case, the landlord would have to decide whether to accept the lower payment or seek a different type of tenant who can afford the full market rent.
Utility allowances are also factored into the overall calculation. These allowances vary but are typically around $300-$400 per month for a two-bedroom apartment. This means that if a tenant’s portion includes utilities, they might pay an additional $100-$200 on top of the $300 base, depending on the actual utility costs and any subsidies.
In ZIP 70804, where the SAFMR for a two-bedroom unit is $1280, landlords should expect a reimbursement gap if the local market rent is higher than this amount. Conversely, if the market rent is lower, landlords may see a surplus. However, since the local market rent data is currently unavailable, we cannot provide a precise surplus or deficit figure. Landlords should monitor market conditions closely and adjust their expectations accordingly.
To summarize, in ZIP 70804, landlords participating in the Section 8 program for a two-bedroom unit should anticipate receiving a maximum of $1280 per month from the housing authority, with the tenant contributing 30% of their adjusted income plus any applicable utility costs. The key to profitability lies in aligning rental rates with the SAFMR and understanding the local market dynamics.
Data Sources: FMR data from HUD (2027).
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.