Location: Shreveport-Bossier City, LA | Metro: Shreveport-Bossier City, LA MSA
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 | $880 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,470 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,470 | $146,468 | 1% | B |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1080 for ZIP 71004 in fiscal year 2024 will adequately cover the mortgage on a home valued at $147,111. According to recent data, mortgage rates vary but let's consider a moderate rate of 4%. For a home priced at $147,111, a mortgage payment could be approximately $730 per month, assuming a 20% down payment. This means that the FMR of $1080 would indeed cover the mortgage, leaving a surplus of $350 per month.
The investor may also doubt if there is sufficient demand from renters given a rental vacancy rate of 9.0%. While a 9.0% vacancy rate might seem high, it is important to note that the average market rent in ZIP 71004 is around $750 - $999 for 3+ bedroom properties. This suggests that there is a segment of the population willing to pay within this range, which aligns well with the FMR. Additionally, the lower end of this market rent range is significantly below the FMR, indicating that there is a price point where demand meets supply.
Another concern could be whether voucher payments will keep up with the $1,109 average market rent. The FMR of $1080 is slightly below the market rent, suggesting that voucher holders may have some difficulty finding suitable housing. However, it's worth noting that the FMR is designed to reflect the 40th percentile of market rents, meaning that 60% of units are above this figure. Therefore, while there may be challenges, it is reasonable to expect that a significant portion of rental properties in ZIP 71004 fall within the range covered by the FMR.
In conclusion, the FMR of $1080 does provide a margin above the estimated mortgage cost, indicating financial viability for landlords. The rental vacancy rate, while higher than desirable, is balanced by the fact that the FMR is above the average market rent for many properties. Lastly, while the FMR is below the average market rent, it still covers a substantial portion of the rental market in ZIP 71004.
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.