Location: Madison Parish, LA | Metro: Richland Parish, LA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $810 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,480 |
| 5 Bedrooms | $1,717 |
| 6 Bedrooms | $1,923 |
| 7 Bedrooms | $2,077 |
| 8 Bedrooms | $2,181 |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 71232 are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code is set at $960 for fiscal year 2026. This figure represents the maximum amount that the government will pay landlords participating in the Section 8 Housing Choice Voucher program for a unit of this size. However, it's important to understand that the reimbursement to landlords is not simply this flat rate. Instead, it involves several components that must be considered.
The local market rent for a two-bedroom unit in ZIP 71232, according to the Census ACS, is $935. This suggests that the SAFMR slightly exceeds the average market rent, which could be advantageous for landlords. The actual payment received by a landlord through a Section 8 voucher consists of the difference between the SAFMR and the tenant's portion of the rent, plus any applicable utility allowances.
Tenants are required to contribute a fixed percentage of their income toward rent. For low-income families, this is typically 30% of their adjusted monthly income. If a tenant's income is $1,500 per month, their contribution would be $450. The remaining balance, up to the SAFMR of $960, would be covered by the government. In this example, the government would pay $510 to meet the SAFMR.
Utility allowances can vary but are designed to cover a reasonable estimate of heating, cooling, water, and electricity costs. These allowances are added to the government's reimbursement. For instance, if the utility allowance is $100, the total reimbursement to the landlord would be $610 ($510 + $100).
In ZIP 71232, landlords might experience a surplus when comparing the total reimbursement to the local market rent. Given the SAFMR of $960 and assuming a tenant contribution of $450, with a utility allowance of $100, the landlord would receive $610 from the government. This leaves a surplus of $75 over the local market rent of $935. Therefore, landlords in ZIP 71232 can expect a positive cash flow when renting to tenants with Section 8 vouchers, even without factoring in additional utility allowances.
This surplus indicates that landlords are generally well-compensated for renting to Section 8 tenants in ZIP 71232, as the reimbursement rates exceed the typical market rents. Landlords should ensure they are aware of the specific utility allowances and tenant contributions for each case to accurately calculate their expected income.
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.