Section 8 Fair Market Rent (FMR) for ZIP 70810 - 2027

Investment Score for ZIP 70810

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,190
1 Bedroom	$1,220
2 Bedrooms	$1,380
3 Bedrooms	$1,750
4 Bedrooms	$2,210
5 Bedrooms	$2,564
6 Bedrooms	$2,872
7 Bedrooms	$3,102
8 Bedrooms	$3,257

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,380	$159,353	0.87%	C
3BR	$1,750	$278,157	0.63%	D
4BR	$2,210	$505,297	0.44%	F
5BR	$2,564	$886,506	0.29%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 70810 (Baton Rouge, LA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 70810 in 2026 is set at $1420 for a two-bedroom unit. This figure represents 18.5% of the median household income in the area, which stands at $92,098. However, the actual rental market prices can be significantly higher. The Zillow median price for a two-bedroom home in this ZIP code is $160,415, indicating that the price-to-FMR ratio is approximately 9.4x. This means that landlords who rent properties at the Zillow median price would be charging nearly ten times the FMR for a two-bedroom unit. Given these dynamics, voucher holders face significant constraints. They can only afford units that do not exceed the FMR, which is much lower than the average rental prices in the market. For instance, a three-bedroom unit has an FMR of $1780, but if the rental prices are similar to the Zillow median, they could be much higher, making it difficult for voucher holders to find suitable housing. #### Affordability & Renter Profile ZIP code 70810 has a population of 42,659, with 32.6% being renters. The occupancy rate is 86.8%, suggesting a relatively tight rental market. With a median household income of $92,098, the area attracts a mix of middle-income and upper-middle-income residents. However, the high price-to-FMR ratio indicates that the rental market is not particularly affordable for low-income individuals. The median income suggests that the typical renter in this area likely earns above the national average, but the high rental prices still pose challenges for many. Given that 18.5% of the median income is allocated towards a two-bedroom unit, it implies that the majority of renters must spend a considerable portion of their earnings on housing. This tight market and high rental prices suggest that there is a significant demand for affordable housing options, but the supply is limited. #### Investor Angle From an investor perspective, the ZIP code 70810 offers both opportunities and challenges. The FMRs provide a baseline for what voucher holders can afford, but the actual rental market prices are much higher. To determine whether this ZIP code is cash-flow positive at FMR, we need to consider the cost of acquiring and maintaining properties. Assuming a typical two-bedroom unit costs around $160,415 (the Zillow median), and using the FMR of $1420, we can calculate the potential monthly cash flow. If we assume a conservative annual appreciation rate of 3% and a mortgage rate of 4.5%, the monthly mortgage payment for a property costing $160,415 would be approximately $760. Adding maintenance and other expenses, such as insurance and property taxes, might bring the total monthly cost to around $900-$1000. At an FMR of $1420, the net cash flow would be positive, ranging from $420 to $520 per month. However, the challenge lies in finding tenants willing to pay the FMR. Given the high actual rental prices, many landlords might prefer to rent to non-voucher holders who can pay more. Therefore, while the FMR provides a positive cash flow, the difficulty in attracting voucher holders could impact the overall profitability. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high FMR for larger units, investors should focus on smaller units like one-bedroom and two-bedroom apartments. These units have lower FMRs ($1250 and $1420 respectively) and are more likely to attract voucher holders. For example, a one-bedroom unit at $1250 would generate a net cash flow of about $250-$350 per month, assuming similar acquisition and maintenance costs. 2. **Consider Lower-Priced Properties**: Investors should look for properties priced below the Zillow median. A two-bedroom unit priced at $140,000 instead of $160,415 would reduce the monthly mortgage payment to around $650, thereby increasing the net cash flow to approximately $770 per month. This strategy would make the investment more attractive to voucher holders and potentially increase occupancy rates. #### Bottom Line For Section 8-focused investors, the ZIP code 70810 presents a mixed picture. While the FMRs provide a positive cash flow, the high actual rental prices and tight market conditions mean that finding tenants willing to pay the FMR can be challenging. The recommendation is to **Hold** investments in this ZIP code, focusing on smaller units and properties priced below the median. This approach will help maximize the chances of attracting voucher holders and ensure a steady cash flow. However, investors should be prepared for competition from landlords who prefer to rent to non-voucher holders willing to pay higher rates.

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.