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 | $1,040 |
| 1 Bedroom | $1,060 |
| 2 Bedrooms | $1,200 |
| 3 Bedrooms | $1,520 |
| 4 Bedrooms | $1,920 |
| 5 Bedrooms | $2,227 |
| 6 Bedrooms | $2,494 |
| 7 Bedrooms | $2,694 |
| 8 Bedrooms | $2,829 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,200 | $172,658 | 0.7% | D |
| 3BR | $1,520 | $307,302 | 0.49% | F |
| 4BR | $1,920 | $455,826 | 0.42% | F |
| 5BR | $2,227 | $702,656 | 0.32% | F |
U.S. Census Bureau data (2024)
The ZIP code 70806, located in Baton Rouge, Louisiana, presents an interesting scenario for both renters and landlords. The median household income here stands at $55,642, which contrasts sharply with the market rate rent of $1,222 per month (ZORI - Zillow Rent Index).
To put this into perspective, let’s consider the affordability of housing for the average renter. At a median income of $55,642 annually, the monthly take-home pay for a household would be approximately $4,637 before taxes. However, the $1,222 monthly rent represents a significant portion of that income, making it challenging for many households to find affordable housing without financial assistance.
Enter the Housing Choice Voucher Program, commonly known as Section 8. The Fair Market Rent (FMR) for ZIP 70806 for fiscal year 2024 is set at $1,240. This means that landlords who participate in the voucher program can expect to receive a payment close to the market rate, with the added benefit of reduced risk associated with non-payment or late payment by tenants.
Given that 57.0% of the 28,302 residents in ZIP 70806 are renters, there is a notable demand for rental properties. However, the affordability gap between the median income and the market rate rent suggests that competition among landlords could be fierce, especially for those targeting cash-paying tenants who might struggle to meet the rent requirements.
The takeaway for landlords is clear: participating in the voucher program can be a strategic advantage. By accepting vouchers, landlords ensure a steady stream of income that closely mirrors the market rate, while also catering to a segment of the population that might otherwise find it impossible to afford housing in this area. This approach can help mitigate the risks associated with vacancy and late payments, ensuring a more stable investment.
In summary, the affordability gap in ZIP 70806 means that landlords should seriously consider the benefits of accepting vouchers. It aligns their rental rates with government standards, making housing accessible to a broader range of residents, and potentially offering a more secure and profitable investment strategy.
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.