Location: Shreveport-Bossier City, LA | Metro: Shreveport-Bossier City, LA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $960 |
| 1 Bedroom | $1,060 |
| 2 Bedrooms | $1,200 |
| 3 Bedrooms | $1,580 |
| 4 Bedrooms | $1,670 |
| 5 Bedrooms | $1,937 |
| 6 Bedrooms | $2,169 |
| 7 Bedrooms | $2,343 |
| 8 Bedrooms | $2,460 |
The analysis for ZIP code 71171 in Louisiana focuses on deriving the Section 8 cap-rate picture using available data. For this ZIP code, the Fair Market Rent (FMR) for a two-bedroom apartment in fiscal year 2024 is set at $1240 per month. To annualize this figure, we multiply it by 12, yielding an annual rental income of $14,880.
Given that the median home value is not available, we cannot calculate a precise cap rate for market rents. However, for the Section 8 scenario, if we assume a typical occupancy rate, the annualized rental income can be used to estimate the gross yield. The gross yield is calculated by dividing the annual rental income by the property's value. Without the median home value, we cannot provide a specific gross yield percentage for ZIP 71171.
To make a concrete comparison, let's consider a hypothetical median home value of $150,000, which is a reasonable assumption for many rural areas in Louisiana. With this value, the implied gross yield for a Section 8 property would be approximately 9.92% ($14,880 / $150,000).
However, the lack of market rent data makes it challenging to compare this with the gross yield from market rents. Additionally, without knowing the exact renter density and days on market (DOM), it's difficult to determine which scenario is more realistic. Generally, higher renter density and lower DOM suggest a more favorable market for rental properties, including those participating in the Section 8 program.
In conclusion, while we have a clear figure for the Section 8 FMR, the absence of critical data such as median home value, market rent, and specific local market conditions means that the gross yield comparison remains speculative. Investors should gather more detailed local real estate data to refine their investment decisions in ZIP 71171.
Data Sources: FMR data from HUD (2027).
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.