Location: Claiborne Parish, 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 | $690 |
| 1 Bedroom | $720 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,190 |
| 4 Bedrooms | $1,230 |
| 5 Bedrooms | $1,427 |
| 6 Bedrooms | $1,598 |
| 7 Bedrooms | $1,726 |
| 8 Bedrooms | $1,812 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $930 | $92,459 | 1.01% | B |
| 3BR | $1,190 | $112,433 | 1.06% | B |
U.S. Census Bureau data (2024)
A skeptical investor considering Bernice, LA (ZIP 71222), might question whether the Fair Market Rent (FMR) of $820 for the fiscal year 2024 can adequately cover the mortgage on a home priced at $103,370. To address this concern, we must first calculate the expected monthly mortgage payment. Assuming a standard 30-year fixed-rate mortgage with an interest rate of around 4%, the monthly payment would be approximately $500. This leaves a buffer of around $320 per month, which should cover property taxes, insurance, maintenance, and other expenses. However, it's important to note that this calculation assumes no down payment was made, which is often not the case.
The next objection is the relatively low percentage of renters in the area, standing at 20.0%. While this figure does suggest a smaller pool of potential tenants, it's crucial to consider the local context. In rural areas like Bernice, the rental market can be quite stable due to the limited number of properties available. Additionally, the percentage of renters does not directly correlate with the demand for rental properties; it's the absolute number of renters and the vacancy rate that matter more. Unfortunately, the provided data does not include the vacancy rate or the total number of renters, so we cannot fully assess the demand.
Lastly, an investor might question if the Housing Choice Voucher program will keep up with the market rents, currently estimated at $649. The FMR set by HUD for voucher recipients is designed to reflect the average rent for a modest home in the area. Given that the FMR is higher than the current market rent, it suggests that voucher holders should have sufficient funds to cover the typical rent. However, the actual distribution of vouchers and their adequacy in covering the rent can vary. It's also worth noting that the FMR is adjusted annually, and future adjustments will depend on changes in the local housing market.
In summary, while the data provides some assurance regarding the financial viability of investing in Bernice, LA, it does not offer a complete picture. More detailed local market analysis, including vacancy rates and the distribution of rental assistance, would be necessary to fully evaluate the investment opportunity.
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.