Location: Jackson Parish, LA | Metro: Bienville Parish, LA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $850 |
| 1 Bedroom | $1,050 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,620 |
| 4 Bedrooms | $1,750 |
| 5 Bedrooms | $2,030 |
| 6 Bedrooms | $2,274 |
| 7 Bedrooms | $2,456 |
| 8 Bedrooms | $2,579 |
U.S. Census Bureau data (2024)
The analysis for the Section 8 program in ZIP code 71268 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $1,090, whereas the Census ACS data indicates that the average market rent is $950. This means there is a $140 difference, which translates into a 14.7% gap between the two figures.
In this scenario where the FMR exceeds the market rent, landlords and small-portfolio investors can leverage this situation to enhance their investment yields. The higher FMR allows voucher holders to potentially cover more of the rental costs, making it financially viable for landlords to rent properties at or near the FMR without losing tenants. Given that only 15.8% of residents are renters and the median home value stands at $146,600, the overall demand for rentals might be lower compared to owner-occupied homes. However, the presence of Section 8 vouchers can stabilize occupancy rates and provide a steady stream of income.
The median income in ZIP 71268 is $69,018, indicating that many residents could benefit from the assistance provided by housing vouchers. This financial aid helps bridge the affordability gap, ensuring that rental units are occupied by those who might otherwise struggle to afford market rates. For investors, this means a reduced risk of vacancies and a more predictable cash flow, despite the slightly inflated rent compared to the open market.
While the FMR is designed to reflect the reasonable cost of decent housing, it often does not align perfectly with local market conditions. In ZIP 71268, the higher FMR compared to the market rent suggests an opportunity for landlords to receive rents that are above what they would typically get from non-voucher tenants. This can improve the overall profitability of rental properties in this area.
To summarize, the $140 gap between the FMR and market rent represents a 14.7% premium for landlords willing to accept Section 8 vouchers. This makes the ZIP code an attractive yield play, especially considering the context of low rental demand and moderate median incomes. By accepting voucher tenants, landlords can ensure stable occupancy and better returns on their investments.
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.