Location: Baton Rouge, LA | Metro: Baton Rouge, LA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,290 |
| 1 Bedroom | $1,320 |
| 2 Bedrooms | $1,500 |
| 3 Bedrooms | $1,900 |
| 4 Bedrooms | $2,410 |
| 5 Bedrooms | $2,796 |
| 6 Bedrooms | $3,132 |
| 7 Bedrooms | $3,383 |
| 8 Bedrooms | $3,552 |
U.S. Census Bureau data (2024)
The ZIP code 70836 presents a dynamic rental market that is currently in flux. With a Fair Market Rent (FMR) set at $1550 for fiscal year 2024, the federally determined benchmark indicates the maximum amount that a low-income household should pay for housing. This figure, however, stands higher than the actual market rent, which is measured at $1,313 according to the Zillow Observed Rental Index (ZORI). This discrepancy suggests that while the federal guidelines aim to ensure affordability, the local rental market has adjusted to a slightly lower equilibrium, reflecting either a competitive landscape or a response to economic conditions.
The 79.2% renter share in ZIP 70836 underscores a significant reliance on rental properties over homeownership. This high percentage of renters can be indicative of several factors: limited access to credit, economic instability, or a preference for renting due to lifestyle choices. For landlords and small-portfolio investors, this implies a steady demand for rental units, but it also means that competition among landlords could be fierce, driving down rents and increasing the importance of maintaining quality properties to attract tenants.
The absence of specific data on price-cut share and days on market (DOM) makes it challenging to pinpoint the exact balance between supply and demand. However, the fact that the actual market rent is below the FMR suggests that there might be a slight surplus of rental units, indicating that supply may be outpacing demand. This scenario would typically result in landlords being more willing to negotiate prices to secure tenants, although without concrete data on price cuts or DOM, this remains an inference based on the available figures.
In summary, ZIP 70836 offers a market characterized by a substantial renter population and rental prices that are somewhat below the federal guidelines. Landlords must be prepared to compete on both price and property quality to maintain occupancy rates. The dynamics suggest a market that is responsive to local economic conditions and tenant preferences, making it essential for investors to stay informed about any changes that could affect these balances.
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.