Location: Lincoln Parish, LA | Metro: Jackson Parish, LA
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 | $720 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $890 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,430 |
| 5 Bedrooms | $1,659 |
| 6 Bedrooms | $1,858 |
| 7 Bedrooms | $2,007 |
| 8 Bedrooms | $2,107 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $890 | $151,256 | 0.59% | F |
| 3BR | $1,240 | $239,433 | 0.52% | F |
| 4BR | $1,430 | $343,046 | 0.42% | F |
| 5BR | $1,659 | $470,796 | 0.35% | F |
U.S. Census Bureau data (2024)
To determine if you should invest in ZIP 71270 (Ruston, LA) for Section 8 properties, follow these steps:
Step 1: Can the Fair Market Rent (FMR) of $940 cover the debt service on a $225,069 property?
No: The FMR of $940 does not sufficiently cover the debt service on a property valued at $225,069. This indicates that the investment would likely result in a financial loss due to insufficient rental income to meet mortgage payments.
Yes: Proceed to Step 2.
Step 2: How does the market rent ($1,128 ZORI) compare to the FMR ($940)?
Market Rent Above FMR: The market rent of $1,128 exceeds the FMR of $940, which suggests that while the property may be profitable outside of Section 8, it will not attract Section 8 tenants who can only pay up to the FMR. Therefore, investing solely for Section 8 tenants is not advisable.
Market Rent Equal to or Below FMR: Proceed to Step 3.
Step 3: Is there sufficient demand with 50.0% of residents being renters and an average of 67 days on the market (DOM)?
It Depends: With 50.0% of residents being renters and an average DOM of 67 days, there is moderate demand. However, the decision to invest hinges on the ability to clear debt service with the FMR. Given the market rent is higher than the FMR, landlords must consider whether they want to cater exclusively to Section 8 tenants or open their units to the broader market where they could potentially earn more.
In summary, ZIP 71270 presents a scenario where the primary concern is the discrepancy between the FMR and the market rent. Landlords looking to exclusively serve Section 8 tenants will face challenges due to the low FMR relative to the cost of the property. Those willing to explore both Section 8 and non-Section 8 tenants might find the area viable, given the moderate demand conditions. However, the initial step of ensuring the FMR can cover the debt service must be addressed to avoid financial losses.
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.