Location: Shreveport-Bossier City, LA | Metro: Shreveport-Bossier City, LA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $870 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 71027 centers around the disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1160. However, the market rent data is currently unavailable, which makes it challenging to provide a precise percentage gap. Despite this limitation, the implications of the FMR being higher than the potential market rent can still be explored.
When the FMR exceeds the market rent, landlords and small-portfolio investors can leverage this situation to increase their yields. Voucher tenants, who receive rental assistance through the Section 8 program, can help fill properties that might otherwise struggle to attract open-market renters due to pricing. This scenario benefits investors by ensuring a steady stream of income, even if the rents are slightly below the FMR. The government covers the difference between the tenant's contribution and the FMR, providing a reliable payment structure that minimizes vacancy risks.
In ZIP 71027, where only 14.6% of residents are renters, securing tenants can be competitive. With a median income of $42,781, many potential renters may find it difficult to afford market-rate housing. Thus, the availability of Section 8 vouchers becomes crucial for landlords seeking to maintain occupancy levels and generate consistent cash flows. While the median home value is not available, the low percentage of renters suggests a predominantly owner-occupied area, further emphasizing the importance of rental support programs like Section 8.
If the FMR were to fall below the market rent, the cost of housing voucher tenants would become a significant consideration. Landlords would need to decide whether accepting lower rents through the Section 8 program is financially viable compared to open-market rates. This decision impacts both the immediate rental income and long-term investment strategy, particularly in areas where rental demand is already low.
To summarize, the current FMR of $1160 in ZIP 71027 presents an opportunity for landlords to secure tenants through the Section 8 program, especially given the low percentage of renters and median income levels. This ensures a stable income source and helps manage the risk associated with high vacancy rates.
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.