Location: Monroe, LA | Metro: Monroe, LA HUD Metro FMR Area
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 | $870 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,460 |
| 4 Bedrooms | $1,490 |
| 5 Bedrooms | $1,728 |
| 6 Bedrooms | $1,935 |
| 7 Bedrooms | $2,090 |
| 8 Bedrooms | $2,195 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,130 | $86,195 | 1.31% | A |
| 3BR | $1,460 | $183,783 | 0.79% | D |
| 4BR | $1,490 | $301,925 | 0.49% | F |
| 5BR | $1,728 | $436,839 | 0.4% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 71203 in Monroe, Louisiana, reveals some key insights into the potential returns for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a two-bedroom property in fiscal year 2024 is set at $1,040 per month, while the Zillow Observed Rental Index (ZORI) indicates a market rent of $1,408 per month.
To calculate the gross yield, we annualize these figures. For the FMR scenario, the annualized rent would be $12,480 ($1,040 x 12 months), and for the ZORI scenario, it would be $16,896 ($1,408 x 12 months).
The median home value in ZIP 71203 is $182,870. Based on this, the implied gross yield for the FMR scenario is approximately 6.8%, calculated as $12,480 divided by $182,870. In contrast, the implied gross yield for the ZORI scenario is about 9.2%, calculated as $16,896 divided by $182,870.
Given the local rental market dynamics, with a renter density of 43.7% and an average Days on Market (DOM) of 33 days, the ZORI-based gross yield of 9.2% is more reflective of the current conditions. This higher yield suggests that landlords can expect better returns when renting to market rates rather than relying solely on Section 8 vouchers.
The lower FMR-based gross yield of 6.8% might be indicative of properties that are exclusively participating in the Section 8 program. However, considering the relatively high renter density and quick turnover in the area, landlords should aim for market rents to maximize their income and investment performance.
In conclusion, while Section 8 can provide a stable source of rental income, the data suggests that achieving the market rent offers a significantly higher gross yield. Landlords and investors should weigh these factors carefully when deciding how to position their properties in ZIP 71203.
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.