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 |
|---|---|---|---|---|
| 2BR | $1,090 | $55,360 | 1.97% | A+ |
| 3BR | $1,360 | $92,344 | 1.47% | A |
| 4BR | $1,750 | $114,653 | 1.53% | A+ |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP 70805 in Baton Rouge, Louisiana, might raise several concerns regarding the viability of investing in properties through the Section 8 program. Here's an analysis based on the provided data.
Objection 1: Will FMR $1070 (zip FY 2024) cover the mortgage on a $65,092 home?
The Fair Market Rent (FMR) for ZIP 70805 is set at $1070 per month for fiscal year 2024. To determine if this amount can cover the mortgage on a home priced at $65,092, we need to consider the interest rate and loan term. Assuming a typical 30-year fixed-rate mortgage with an interest rate of around 4%, the monthly payment would be approximately $325. This means that the FMR of $1070 would indeed cover the mortgage, leaving a surplus of $745 per month. However, this calculation does not account for property taxes, insurance, maintenance costs, and other expenses that come with owning a rental property.
Objection 2: Is there enough renter demand at 59.5%?
The rental vacancy rate in ZIP 70805 is 59.5%. This figure suggests a significant portion of available housing units are occupied by renters. However, it's important to note that a high occupancy rate does not necessarily indicate strong demand. In fact, a 59.5% vacancy rate implies that nearly half of all units are unoccupied, which could signal weak demand. To get a clearer picture, it would be beneficial to compare this rate with historical trends and those of similar areas. The data provided does not include these comparisons, so it's challenging to definitively conclude the strength of renter demand solely based on the current vacancy rate.
Objection 3: Will vouchers keep pace with $912 market rents?
The FMR of $1070 is higher than the average market rent of $912, indicating that voucher holders could potentially cover the full rent amount. However, the effectiveness of this depends on the specific terms of the Housing Choice Voucher Program in the area. If the voucher program allows for rents up to the FMR, then it should keep pace with market rents. It's also worth noting that voucher programs often have waiting lists and limited availability, which could affect the number of qualified tenants. The data provided does not specify the local dynamics of the voucher program, so while the numbers suggest alignment, practical considerations must be taken into account.
In summary, the FMR of $1070 can cover the mortgage on a home priced at $65,092, but additional expenses must be considered. The 59.5% vacancy rate indicates a mixed outlook on renter demand, requiring further investigation into historical trends and local market conditions. Lastly, while the FMR exceeds the market rent of $912, the specifics of the local voucher program will ultimately determine its ability to keep pace with market rents.
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.