Location: Franklin Parish, LA | Metro: Franklin Parish, LA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $640 |
| 1 Bedroom | $710 |
| 2 Bedrooms | $890 |
| 3 Bedrooms | $1,090 |
| 4 Bedrooms | $1,350 |
| 5 Bedrooms | $1,566 |
| 6 Bedrooms | $1,754 |
| 7 Bedrooms | $1,894 |
| 8 Bedrooms | $1,989 |
The analysis for ZIP code 71324 in Unknown, LA, reveals a challenging environment for deriving a precise Section 8 cap-rate picture due to limited data availability. However, using the provided figures, we can outline two scenarios: one based on the Fair Market Rent (FMR) for a 2-bedroom unit set at $830 annually (for FY 2026), and another that would consider market rent if it were available.
In the first scenario, using the FMR of $830 per month, the annualized rental income for a property could be calculated. However, without a specific median home value, it's impossible to calculate an exact cap rate. The implied gross yield in this case would be derived from the rental income relative to the property value, which remains undefined here. This scenario assumes a stable income stream but does not account for potential market fluctuations.
If market rent were available, it would provide a more accurate reflection of what landlords might expect to earn outside of the Section 8 program. The gross yield in this scenario would directly compare the market rent to the median home value. Yet, with the median home value being N/A, this calculation cannot be completed. Therefore, any discussion of gross yield in this context must remain speculative.
Given the N/A% renter density and N/A-day days on market (DOM), it's difficult to assess which scenario is more realistic. Renter density and DOM are crucial indicators for understanding the local housing market dynamics. A higher renter density suggests a larger pool of potential tenants, while a shorter DOM indicates quicker property turnover. Both factors would influence the choice between accepting Section 8 tenants or seeking market-rate renters.
To make a concrete comparison, investors should gather additional data such as recent sales prices of homes in ZIP 71324, the percentage of homes occupied by renters, and the typical time it takes to rent out properties. These metrics would help in estimating the median home value and the market rent, thereby providing a clearer cap-rate and gross-yield picture. Until then, the FMR-based scenario offers a baseline for expected income stability, whereas the market rent scenario hints at potential for higher returns, contingent upon the actual market conditions.
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.