Location: Alexandria, LA | Metro: Alexandria, LA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $670 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,380 |
| 5 Bedrooms | $1,601 |
| 6 Bedrooms | $1,793 |
| 7 Bedrooms | $1,936 |
| 8 Bedrooms | $2,033 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap rate for ZIP code 71330 reveals a challenging investment scenario due to the lack of complete data points.
In ZIP 71330, the annualized Fair Market Rent (FMR) for a 2-bedroom unit in FY 2024 is set at $1000. However, the median home value is not available, making it difficult to calculate an exact cap rate. The implied gross yield based on the FMR can be estimated if we assume a typical property value for a rental unit in this area. For instance, if a property were valued at $120,000, the gross yield would be around 10%. This calculation is derived from the formula: (Annual Rent / Property Value) * 100 = Gross Yield. In this case, ($1000 * 12) / $120,000 = 10%.
Market rent data is also unavailable, which further complicates the analysis. Without knowing the market rent, it's impossible to compare the gross yield between market conditions and Section 8 rates. Typically, market rents would provide a higher gross yield, assuming they exceed the FMR.
The 0.0% renter density suggests that very few residents in ZIP 71330 participate in the Section 8 program, indicating low demand for subsidized housing. Additionally, the Days on Market (DOM) figure being N/A implies there isn't enough recent sales data to determine how quickly homes sell in this area, adding another layer of uncertainty to the investment potential.
Given these factors, the gross yield calculated using the FMR is the most concrete figure available. It provides a baseline for potential returns under the Section 8 program. However, without market rent data and a clearer picture of the local rental market, it's challenging to definitively state whether this is a realistic scenario for investment.
To make a more informed decision, investors should seek additional local market insights, including trends in rental demand and property values. These factors will help paint a clearer picture of the potential for achieving a favorable cap rate in ZIP 71330.
Data Sources: FMR data from HUD (2027). 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.