Section 8 Fair Market Rent (FMR) for ZIP 71111 - 2027

Investment Score for ZIP 71111

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$990
1 Bedroom	$1,100
2 Bedrooms	$1,240
3 Bedrooms	$1,640
4 Bedrooms	$1,720
5 Bedrooms	$1,995
6 Bedrooms	$2,234
7 Bedrooms	$2,413
8 Bedrooms	$2,534

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,100	$75,882	1.45%	A
2BR	$1,240	$100,830	1.23%	A
3BR	$1,640	$238,376	0.69%	D
4BR	$1,720	$369,839	0.47%	F
5BR	$1,995	$524,428	0.38%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 71111 (Bossier City, LA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 71111, as set by HUD for 2026, is $1250 for a two-bedroom unit. This represents 23.0% of the median household income in Bossier City, which stands at $65,292. The FMRs for other bedroom sizes are as follows: $980 for a zero-bedroom unit, $1100 for a one-bedroom unit, $1640 for a three-bedroom unit, and $1750 for a four-bedroom unit. These figures serve as the maximum rent that can be charged to tenants using Section 8 vouchers. However, the actual rents in the area are significantly higher than these FMRs. According to Zillow, the median price for a two-bedroom home in this ZIP code is $100,393. When we calculate the price-to-FMR ratio, it comes out to approximately 6.7x. This means that the actual rental prices are likely to be much higher than the FMRs, creating a significant constraint for voucher holders who may struggle to find affordable housing within the limits of their vouchers. #### Affordability & Renter Profile In Bossier City, 42.5% of households are renters, indicating a substantial demand for rental properties. With a population of 43,925, there is a notable segment of the community relying on rental units. The occupancy rate of 91.4% suggests that the market is relatively tight, with few vacant units available. Given that 2BR units represent 23.0% of the median income, it indicates that a significant portion of the renters may face affordability challenges, especially those with lower incomes. The high price-to-FMR ratio of 6.7x further underscores the affordability issue. It implies that the typical rental prices are far above what is considered fair market rent, making it difficult for low-income families to find suitable housing. This tight market condition could lead to increased competition among renters, driving up rental prices even further. #### Investor Angle From an investor’s perspective, the ZIP code 71111 presents a mixed scenario. While the occupancy rates are high, suggesting strong demand, the actual rental prices are well above the FMRs. For instance, the Zillow median price for a two-bedroom home is $100,393, which translates to a monthly rental cost of around $836. However, this figure is based on the median home value and not necessarily indicative of the rental market. Given the price-to-FMR ratio of 6.7x, it is reasonable to assume that the actual rental costs are significantly higher. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the potential rental income versus the FMR caps. If an investor were to purchase a property at the median price of $100,393 and rent it out at the FMR cap of $1250 for a two-bedroom unit, the cash flow would depend on the mortgage payments, property taxes, insurance, and maintenance costs. Assuming a conservative estimate of 1% annual property tax ($1003.93), $100 per month for insurance, and $100 per month for maintenance, the total monthly expenses would be around $1103.93. At the FMR cap of $1250, the net monthly cash flow would be approximately $146.17. This calculation assumes a 30-year fixed-rate mortgage at 5%, which would result in a monthly payment of about $520. Given these assumptions, the investment would be marginally cash-flow positive at the FMR cap. However, the high price-to-FMR ratio suggests that the actual rental market is much more lucrative, but also more competitive. Investors should be cautious about relying solely on FMRs to ensure profitability, as they may need to look beyond Section 8 vouchers to achieve better returns. #### Specific Actionable Insights 1. **Focus on Properties Below FMR Cap**: Investors should target properties that can be rented below the FMR cap to attract Section 8 voucher holders. For example, a two-bedroom unit priced at $1250 or slightly below would be attractive to voucher holders. This strategy can help secure long-term tenancy and avoid the risk of vacancy. 2. **Consider Mixed-Income Developments**: Given the high price-to-FMR ratio, developing mixed-income properties could be a viable strategy. By offering a mix of units at different price points, including some at or below FMR, investors can cater to both voucher holders and higher-paying tenants. This approach can balance the financial risks associated with relying solely on Section 8 vouchers. 3. **Utilize Property Tax Incentives**: Since property taxes can be a significant expense, investors should explore local incentives such as property tax abatements or exemptions for affordable housing developments. These incentives can improve the overall financial viability of the investment. #### Bottom Line For Section 8-focused investors, the ZIP code 71111 (Bossier City, LA) presents a challenging but potentially rewarding market. The high price-to-FMR ratio indicates that the actual rental market is much more expensive than the FMRs, which could limit the pool of potential tenants using vouchers. However, the strong demand and high occupancy rates suggest that there is a solid foundation for rental investments. Based on the provided data, the recommendation for investors is to **Hold**. While the market is tight and offers opportunities for rental income, the reliance on FMR caps for Section 8 vouchers makes it necessary to carefully evaluate the financial feasibility of each property. Investors should focus on properties that can be rented at or slightly below the FMR to ensure they remain attractive to voucher holders while maintaining a positive cash flow.

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.