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 | $1,180 |
| 1 Bedroom | $1,210 |
| 2 Bedrooms | $1,370 |
| 3 Bedrooms | $1,740 |
| 4 Bedrooms | $2,200 |
| 5 Bedrooms | $2,552 |
| 6 Bedrooms | $2,858 |
| 7 Bedrooms | $3,087 |
| 8 Bedrooms | $3,241 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,370 | $173,718 | 0.79% | D |
| 3BR | $1,740 | $272,605 | 0.64% | D |
| 4BR | $2,200 | $382,422 | 0.58% | F |
| 5BR | $2,552 | $532,135 | 0.48% | F |
U.S. Census Bureau data (2024)
The market in ZIP 70817, located in Baton Rouge, Louisiana, is characterized by a rental Fair Market Rent (FMR) of $1530 for fiscal year 2024, indicating a clear demand for affordable rental properties. The Zillow Observed Rent Index (ZORI) stands at $1,713, suggesting that market rents slightly exceed the government's affordability benchmarks. This implies a competitive environment where landlords can charge premiums above the FMR, but also face challenges in retaining tenants who might seek more affordable options.
The low price-cut share of 0.3% and a days-on-market (DOM) figure of 42 days suggest that homes in this area do not typically require significant price reductions to sell, nor do they linger on the market for extended periods. These metrics point towards a stable housing market where supply meets demand efficiently, without overwhelming inventory that would drive prices down.
The median home value in ZIP 70817 is $303,812. This figure is indicative of the overall property values in the area and can be used to gauge the economic health of the neighborhood. A median home value in this range suggests a middle-class community where homeownership is attainable for many residents, though it may still present financial strain for those with lower incomes.
The 20.0% renter share in the ZIP code highlights a substantial portion of the population that relies on rental housing. This high percentage of renters can exert long-term pressure on the housing market, as it reflects a continuous demand for rental units. Landlords and small-portfolio investors should consider the potential for steady rental income, given the significant number of individuals choosing to rent over buy. Additionally, this trend may indicate a broader demographic or economic factor, such as young professionals or students, which can influence the type of rental properties that are most sought after in the area.
In summary, ZIP 70817 presents a balanced market where both rental and sale dynamics suggest neither an excess of supply nor demand. The presence of a notable renter share points to ongoing pressure for rental housing, making it a potentially lucrative investment opportunity for those willing to cater to this segment of the population.
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.