Location: Alexandria, LA | Metro: Alexandria, LA MSA
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 | $740 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,310 |
| 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 | $970 | $71,857 | 1.35% | A |
| 3BR | $1,310 | $142,782 | 0.92% | C |
| 4BR | $1,430 | $272,680 | 0.52% | F |
U.S. Census Bureau data (2024)
Alexandria, LA's ZIP code 71301 is a moderately sized neighborhood with a population of 17,035 residents. Over half of these residents, specifically 52.1%, are renters, indicating a significant demand for rental properties. The median household income in this area stands at $43,098, which is below the national average but still provides a stable economic base. The median home value in ZIP 71301 is $107,677, suggesting that it is an affordable housing market.
The rent economics in this neighborhood are favorable for investors. According to the Fair Market Rent (FMR) data for fiscal year 2024, the FMR for ZIP 71301 is set at $980. In contrast, the market rent, based on Census American Community Survey (ACS) data, is $927. This means that landlords who participate in the Section 8 program can expect higher rental income compared to the local market rate. The gap between the FMR and the market rent suggests that there is potential for both hands-off voucher operators and hands-on value-add buyers to find opportunities in this ZIP code.
For hands-off operators, the stability provided by the Section 8 program ensures a steady stream of income without the need for active tenant management. The difference between the FMR and the market rent also offers a cushion against potential financial risks, given the lower median income levels in the area.
On the other hand, hands-on value-add buyers can leverage the discrepancy between FMR and market rents to create added value through property improvements or better management practices. These investors can potentially increase their rental income above the market rate while still being competitive with the subsidized rates.
In summary, ZIP 71301 presents a balanced opportunity for both types of investors, with a strong rental market and favorable conditions for Section 8 participation. The combination of a high percentage of renters, affordable home values, and a positive spread between FMR and market rents makes this area attractive for those looking to enter or expand their investment portfolio in the Section 8 sector.
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.