Location: Baton Rouge, LA | Metro: Baton Rouge, LA HUD Metro FMR Area
| 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 |
U.S. Census Bureau data (2024)
The HUD Fair Market Rent (FMR) for ZIP code 70813 in the Baton Rouge, LA area for fiscal year 2024 is set at $1280. This figure represents the maximum amount that landlords can charge for Section 8 voucher tenants. However, without specific data on the current market rents in ZIP 70813, it's challenging to provide a direct comparison between the HUD FMR and the actual rental prices.
To determine whether voucher tenants will cashflow at the FMR rate, marginally, or only with premium units, we need to consider the typical rental rates in the area. If the market rents are below $1280, then landlords can expect positive cashflow from voucher tenants. If market rents exceed $1280, landlords might only achieve cashflow with higher-end properties or face marginal returns with standard units.
The median home value in ZIP 70813 is not available, which makes deriving an exact rent-to-price ratio impossible. However, understanding the local real estate market's rent-to-price ratio helps investors gauge the relative attractiveness of renting versus buying in the area. A high rent-to-price ratio suggests that rental income could be a strong draw for investors.
Regarding the days on market (DOM) and the percentage of homes that have been discounted, both metrics are also not available. These figures would give insight into the local housing market's health and the balance between supply and demand. A low DOM and a minimal price-cut share typically indicate a robust market where investors can expect steady cashflow and potential appreciation.
In conclusion, based on the HUD FMR of $1280, investors should focus on identifying properties where they can maintain a positive cashflow position. The strongest angle for investors in ZIP 70813 appears to be cashflow, given the structured payment guarantee from the government through the Section 8 program, assuming market rents do not significantly exceed the FMR. Stability is another compelling factor due to the consistent nature of Section 8 payments, though appreciation potential remains uncertain without additional data on property values over time.
Data Sources: FMR data from HUD (2027). 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.