Section 8 Fair Market Rent (FMR) for ZIP 71306 - 2027
Location: Alexandria, LA | Metro: Alexandria, LA MSA
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $760 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,480 |
| 5 Bedrooms | $1,717 |
| 6 Bedrooms | $1,923 |
| 7 Bedrooms | $2,077 |
| 8 Bedrooms | $2,181 |
To determine if a landlord should buy in ZIP 71306 (Unknown, LA) for Section 8 purposes, follow these steps:
- Step 1: Can FMR ($1000 for zip FY 2024) cover the debt service on a property?
- Yes: If the Fair Market Rent (FMR) of $1000 can cover the mortgage and other expenses associated with owning a property, then proceed to the next step.
- No: If the FMR cannot cover the debt service, buying in ZIP 71306 is not financially viable for Section 8 investment.
- Step 2: Is the market rent above, at, or below FMR?
- Above FMR: If the market rent is higher than the FMR of $1000, landlords could potentially earn more from non-Section 8 tenants. However, they must weigh this against the demand for Section 8 properties.
- At FMR: If the market rent is exactly at the FMR, then Section 8 properties will be priced similarly to the market, making it a neutral decision point based solely on demand.
- Below FMR: If the market rent is lower than the FMR, Section 8 properties might offer better returns compared to the market. This would make the investment more attractive.
- Step 3: Is there sufficient demand for Section 8 properties?
- N/A% renters + N/A-day DOM: The percentage of renters and the days on market (DOM) indicate the level of demand. If the percentage of renters is high and the DOM is low, there is likely strong demand for rental properties, including those that accept Section 8 vouchers. In this case, the answer is Yes, you should consider buying in ZIP 71306.
- It depends: If the percentage of renters is moderate and the DOM is average, the decision to invest in Section 8 properties will depend on your tolerance for risk and the specifics of the local housing market. You may need to conduct further analysis to decide.
- No: If the percentage of renters is low and the DOM is high, indicating weak demand for rentals, investing in Section 8 properties in ZIP 71306 is not recommended.
Note: Specific percentages and DOM figures are required to make a definitive decision on demand. Without these numbers, the final recommendation remains unclear.
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.