Location: Monroe, LA | Metro: Monroe, LA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $790 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,350 |
| 5 Bedrooms | $1,566 |
| 6 Bedrooms | $1,754 |
| 7 Bedrooms | $1,894 |
| 8 Bedrooms | $1,989 |
The economics of Section 8 housing in ZIP code 71294, located in Unknown, Louisiana, within Monroe County, can be quite straightforward when you break down the numbers. For a two-bedroom rental unit, the SAFMR (Small Area Fair Market Rent) for FY 2024 is set at $1010. This figure is specific to this ZIP code, reflecting localized rental market conditions.
A crucial point to understand is that the SAFMR does not necessarily align with the local market rent, which is currently unavailable for ZIP 71294. Regardless, the SAFMR sets the upper limit on what the Housing Choice Voucher Program will pay for a rental unit. If the market rent exceeds this amount, the landlord will not receive additional funds from the program to cover the difference.
The voucher system operates by covering the majority of the rent, but tenants are required to contribute a portion themselves. Typically, this contribution is 30% of their household income. For instance, if a tenant's monthly income is $1500, they would pay approximately $450 towards the rent. The remaining balance is then covered by the voucher, up to the SAFMR limit of $1010. Thus, in this scenario, the voucher would pay $560 ($1010 - $450).
In addition to the base rent, the voucher also includes utility allowances. These allowances vary based on the size of the unit and geographic location. For a two-bedroom unit in ZIP 71294, the utility allowance might be around $300 per month, depending on the specifics of the contract and the household’s usage. This means the total reimbursement a landlord could expect from the voucher program, including utilities, would be around $860 ($560 base rent + $300 utilities).
To summarize, the typical reimbursement gap for a two-bedroom unit in ZIP 71294 would be the difference between the SAFMR of $1010 and the expected reimbursement of $860, resulting in a potential shortfall of $150 per month. Landlords should factor this into their decision-making process regarding participation in the Section 8 program.
Data Sources: FMR data from HUD (2027).
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.