Section 8 Fair Market Rent (FMR) for ZIP 71220 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Housing Authorities Serving ZIP 71220

• Housing Authority of Monroe (Monroe, LA) - 1,560 Section 8 vouchers
• Ouachita Parish Police Jury (Monroe, LA) - 557 Section 8 vouchers
• West Monroe Housing Authority (West Monroe, LA) - 467 Section 8 vouchers
• Morehouse Parish Police Jury (Bastrop, LA) - 187 Section 8 vouchers

A decision tree for whether to invest in ZIP 71220 (Bastrop, LA) for Section 8 properties starts with evaluating the Fair Market Rent (FMR) against the debt service of a property. The FMR for ZIP 71220 in fiscal year 2024 is $820.

Step 1: Clearing Debt Service

• If you own a property valued at $87,322, the FMR of $820 needs to cover your debt service. Assuming an average mortgage rate and term, calculate if $820 per month can cover the monthly mortgage payment plus any other expenses like maintenance and insurance. If it does, proceed to Step 2. If not, do not buy here for Section 8.

Step 2: Market Rent vs. FMR

• The Census American Community Survey reports the market rent in ZIP 71220 as $859. This is slightly above the FMR of $820. If market rent is higher, landlords can potentially charge the higher market rate to non-Section 8 tenants, which can be a positive indicator for investment.

Step 3: Demand Analysis

• In ZIP 71220, 32.1% of the population are renters. However, the Days on Market (DOM) is listed as N/A, which means there isn't sufficient data to determine how quickly rental properties are being leased. Without this information, it's challenging to assess the strength of demand.

Decision Outcome:

• Yes: If the FMR of $820 clears the debt service and you're comfortable with the slight premium in market rent over FMR, and if you believe the 32.1% rental rate indicates enough demand despite the lack of DOM data.
• No: If the FMR of $820 cannot cover the debt service of a $87,322 property, then investing in ZIP 71220 for Section 8 is not advisable.
• It Depends: If you're unsure about the demand due to the lack of DOM data, consider conducting additional research into the local housing market trends or speaking with local real estate agents to gauge tenant interest and leasing speeds.

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.