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 | $890 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,580 |
| 4 Bedrooms | $1,730 |
| 5 Bedrooms | $2,007 |
| 6 Bedrooms | $2,248 |
| 7 Bedrooms | $2,428 |
| 8 Bedrooms | $2,549 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,170 | $163,608 | 0.72% | D |
| 3BR | $1,580 | $212,721 | 0.74% | D |
| 4BR | $1,730 | $335,834 | 0.52% | F |
| 5BR | $2,007 | $430,870 | 0.47% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP 71303, located in Alexandria, LA, might have several concerns regarding the feasibility of investing in properties under the Section 8 program. Let's address these objections head-on using available data.
Will FMR $1150 (zip FY 2024) cover the mortgage on a $229,310 home?
The Fair Market Rent (FMR) for ZIP 71303 in fiscal year 2024 is set at $1150 per month. To determine if this will sufficiently cover the mortgage on a median-priced home of $229,310, we must consider the typical interest rates and loan terms. Assuming a 30-year fixed-rate mortgage at an average rate of 4.5%, the monthly payment on such a property would be approximately $1126. This means that the FMR of $1150 would indeed cover the mortgage, with a slight surplus of $24 per month. However, it's important to note that this calculation does not include property taxes, insurance, maintenance, or other costs associated with owning a rental property. These additional expenses could significantly impact the overall profitability.
Is there enough renter demand at 44.1%?
The percentage of renter-occupied housing units in ZIP 71303 is 44.1%. While this figure is below the national average, it still represents a substantial portion of the housing market. The demand for rental properties, especially those under Section 8, can be robust due to the guaranteed income and government support. However, the data alone does not provide insights into the specific demand for Section 8 rentals versus market-rate rentals. Landlords should conduct further research into local rental trends and the availability of Section 8 vouchers to gauge the potential occupancy rate and competition.
Will vouchers keep pace with $1,237 market rents?
The market rent for ZIP 71303 is reported to be $1,237 per month. Given that the FMR is lower at $1150, there is a gap of $87 between the two figures. Historically, voucher amounts have been adjusted annually based on inflation and changes in the local housing market. However, the data does not specify how frequently adjustments occur or the extent of these adjustments. It is likely that the voucher amount will not fully cover the market rent, leaving landlords with a shortfall. To mitigate this risk, investors should ensure they understand the terms of their lease agreements and any potential subsidies available to bridge the gap between voucher payments and market rents.
In conclusion, while the data indicates that the FMR can cover the mortgage on a median-priced home with a slight buffer, it also reveals a potential challenge in keeping pace with market rents. Investors should carefully weigh these factors and consider supplementary measures to enhance profitability. The demand for rental properties is present, but the specific dynamics of the Section 8 program in ZIP 71303 require deeper investigation to fully assess viability.
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.