Location: Morehouse Parish, LA | Metro: Morehouse Parish, LA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $710 |
| 2 Bedrooms | $890 |
| 3 Bedrooms | $1,180 |
| 4 Bedrooms | $1,180 |
| 5 Bedrooms | $1,369 |
| 6 Bedrooms | $1,533 |
| 7 Bedrooms | $1,656 |
| 8 Bedrooms | $1,739 |
U.S. Census Bureau data (2024)
The Section 8 housing market in ZIP code 71223, located in Morehouse Parish, Louisiana, offers a unique opportunity for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for the area is set at $820 per month for the fiscal year 2024. This figure is notably higher than the average market rent reported by the Census Bureau's American Community Survey (ACS), which stands at $663 per month.
Voucher tenants in this ZIP code will generally cashflow at the FMR rate, meaning that landlords can expect to cover their expenses and make a profit when renting properties at the HUD FMR. The discrepancy between the FMR and the market rent suggests that there is a potential for positive cash flow when renting to voucher holders. However, it is important to note that this cashflow is contingent upon the condition and location of the property, as well as any additional costs such as utilities and maintenance.
To further analyze the investment potential, consider the median home value in ZIP 71223, which is $69,790. This translates into a rent-to-price ratio of approximately 1.17%, calculated by dividing the annualized FMR ($9,840) by the median home value. A lower rent-to-price ratio typically indicates that rental income is less significant relative to the property's value, but in this case, the relatively high FMR compared to the median home value supports a positive cashflow scenario for landlords.
The dynamics of the local real estate market also play a role in investment decisions. In ZIP 71223, the median days on market (DOM) and the percentage of homes that required price reductions are not available, but these metrics would be crucial for understanding how quickly properties sell and at what price point. Given the limited data, it is clear that the primary advantage for investors in this area is the potential for strong cashflow due to the favorable difference between the HUD FMR and the actual market rent.
The strongest angle for investors in ZIP 71223 is cashflow, as the higher FMR rates ensure that voucher tenants can cover the costs of maintaining and owning the property, leaving room for profit without needing to rely on premium units or market appreciation.
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.