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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,360 | $174,546 | 0.78% | D |
| 4BR | $1,750 | $229,397 | 0.76% | D |
U.S. Census Bureau data (2024)
The HUD Fair Market Rent (FMR) for ZIP code 70811 in the Baton Rouge, LA HUD Metro FMR Area for fiscal year 2024 is set at $1230. This figure represents the maximum amount that a Section 8 voucher tenant can pay for rent in this area. In comparison, the market rent, measured by the Zillow Observed Rental Index (ZORI), stands at $1,100. This indicates that voucher tenants will generally cashflow at the FMR rate, as it exceeds the current market rent by $130.
To further analyze the investment potential, consider the median home value in ZIP 70811, which is $158,063. The rent-to-price ratio, calculated using the FMR, comes to approximately 0.90%, while using the ZORI yields about 0.70%. These ratios suggest that rental income is relatively low compared to the cost of owning a property, indicating that the primary benefit for investors would be through cashflow rather than appreciation.
The dynamics between renting and buying in this market do not significantly impact the decision-making process for investors. The median days on market (DOM) is listed as N/A, and the share of listings making price cuts is only 0.3%. These figures imply a stable market with little fluctuation in listing prices, which is favorable for both landlords and small-portfolio investors seeking consistent returns.
The strongest angle for Section 8 investors in ZIP 70811 is cashflow. Given that the FMR is above the current market rent, properties rented to voucher tenants can provide steady positive cashflow, making this an attractive option for investors focused on generating regular income from their investments.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.