Location: Lincoln 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 | $770 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,310 |
| 5 Bedrooms | $1,520 |
| 6 Bedrooms | $1,702 |
| 7 Bedrooms | $1,838 |
| 8 Bedrooms | $1,930 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,000 | $162,769 | 0.61% | D |
| 3BR | $1,290 | $252,896 | 0.51% | F |
| 4BR | $1,310 | $381,004 | 0.34% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 71225, encompassing Calhoun, LA, and the broader Lincoln Parish metro area, does not favor landlords. The Fair Market Rent (FMR) set at $1050 for fiscal year 2024 contrasts sharply with the actual market rent reported by the Census American Community Survey (ACS), which stands at $976. This discrepancy suggests that landlords might struggle to cover costs and generate profit at the FMR level, given the lower prevailing market rates.
Acquisition in this ZIP code is relatively affordable, with a median home value of $241,610. However, the lack of data on days on market (DOM) and the percentage of homes requiring price cuts makes it difficult to assess the ease of selling properties if needed. Landlords should proceed with caution, considering these unknowns could impact the liquidity and potential resale value of their investments.
Tenant demand in ZIP 71225 is moderate. With a total population of 6,354, approximately 17.3% of residents are renters. While this indicates a stable pool of potential tenants, the relatively low renter share means that landlords will face competition for the limited number of individuals seeking rental housing.
In summary, while the acquisition cost is favorable for small-portfolio investors, the mismatch between FMR and market rent presents a significant challenge. Additionally, the moderate tenant demand requires careful management to attract and retain renters. Landlords must balance these factors to ensure sustainable profitability and occupancy rates in this market.
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.