Location: Monroe, 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 | $78,496 | 1.18% | B |
| 3BR | $1,190 | $157,973 | 0.75% | D |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 71260, Marion, LA, provides insight into the potential returns for landlords and small-portfolio investors. Using the Fair Market Rent (FMR) for a two-bedroom apartment at $820 per month, which annualizes to $9,840, and comparing it to the median home value of $123,731, the implied gross yield can be calculated. This calculation yields a gross rental yield of approximately 8%, which is derived by dividing the annualized rent by the median home value.
In contrast, using the market rent figure of $821 per month from the Census ACS, which also annualizes to $9,852, the gross rental yield remains nearly identical at about 8%. The slight difference between the two figures does not significantly impact the overall yield when considering the median home value.
Given the 17.5% renter density in Marion, LA, it is important to note that the number of days on the market (DOM) is listed as N/A, indicating insufficient data to provide an accurate measure. However, the gross rental yield of around 8% is consistent across both the FMR and market rent scenarios. This suggests that the potential for steady rental income exists, but the actual net operating income (NOI) will depend on individual property expenses and management costs.
While the FMR represents the maximum amount that the government will pay towards a tenant's rent, market rents reflect what tenants might actually pay. In ZIP 71260, the close alignment between these two figures implies that landlords participating in the Section 8 program can expect a gross yield comparable to market rates. However, due to the limited renter density, it is crucial for investors to consider the likelihood of maintaining a high occupancy rate, especially since the data does not provide a clear indication of how quickly properties are rented.
Investors should focus on the gross yield as a starting point for their financial models, but they must also account for the unique challenges and benefits of the Section 8 program. For instance, while the program ensures a stable source of income through government subsidies, it also comes with regulatory requirements and potential delays in finding tenants, particularly in areas with low renter density.
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.