Location: Webster Parish, LA | Metro: Shreveport-Bossier City, LA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $930 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,340 |
| 3 Bedrooms | $1,720 |
| 4 Bedrooms | $1,760 |
| 5 Bedrooms | $2,042 |
| 6 Bedrooms | $2,287 |
| 7 Bedrooms | $2,470 |
| 8 Bedrooms | $2,594 |
U.S. Census Bureau data (2024)
The classification of ZIP code 71023 hinges on analyzing its financial metrics, specifically focusing on yield and stability. The Federal Market Rent (FMR) for ZIP 71023 in fiscal year 2024 is set at $1240. This figure represents the average rent that a property can command under the Section 8 program, significantly higher than the market rent of $875. This disparity indicates a potential for higher rental yields when properties are leased through Section 8.
To further contextualize the yield, consider the median home value of $127,520. The FMR of $1240 translates into an annual rental income of $14,880, which is approximately 11.7% of the home's value. This suggests a decent yield relative to the investment made in purchasing the property. However, it's important to note that this yield calculation does not account for operating costs, maintenance, and other expenses associated with property management.
Moving onto stability, ZIP 71023 has a relatively low percentage of renters at 13.6%. While this might suggest a less stable rental market due to fewer potential tenants, the average daily days on market (DOM) is not available, making it difficult to assess how quickly properties are typically rented out. Additionally, the median household income in the area is $46,055. This income level provides some insight into the economic stability of the area; however, without knowing the average rent-to-income ratio, it's challenging to determine how sustainable the rental demand is.
Given these factors, ZIP 71023 appears to be a zone with moderate potential for both yield and stability. It is not a high-yield/low-stability flip-style market, as the income levels suggest a degree of economic stability that would support consistent rental demand. At the same time, it is not purely a steady-cashflow zone, as the relatively low renter population and the absence of DOM data introduce elements of unpredictability. Landlords and small-portfolio investors should weigh the higher Section 8 rents against the potential challenges of finding tenants and maintaining a steady cash flow.
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.