Location: Tensas Parish, LA | Metro: Tensas Parish, LA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $640 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $890 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,350 |
| 5 Bedrooms | $1,566 |
| 6 Bedrooms | $1,754 |
| 7 Bedrooms | $1,894 |
| 8 Bedrooms | $1,989 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 71357 provides a clear picture of the potential rental income versus Fair Market Rent (FMR) and market rent figures. For a two-bedroom apartment, the annualized FMR for FY 2026 is set at $830 per month, while the Census ACS reported market rent stands at $547 per month.
To calculate the implied gross yield, we need to consider the monthly rents. The implied gross yield based on the FMR would be higher than that based on the market rent. However, since the median home value is not available, we cannot directly calculate the cap rate using the formula of net operating income divided by property asset value. Instead, we can compare the gross yields implied by the FMR and market rent figures.
The gross yield implied by the FMR of $830 per month is significantly higher than the gross yield implied by the market rent of $547 per month. This difference highlights the potential benefits of participating in the Section 8 program, where landlords can receive higher rents compared to the general market rates.
Given the 34.0% renter density in ZIP 71357, it's important to note that the majority of residents might prefer or require subsidized housing. This makes the FMR scenario more realistic for landlords who are considering renting to Section 8 participants. The lack of data on the days on market (DOM) does not provide insight into how quickly properties are rented, but the higher renter density suggests a steady demand for rental units.
In conclusion, while the exact cap rate cannot be determined without the median home value, the implied gross yield from the FMR is clearly superior to that from the market rent. Landlords should consider these figures when deciding whether to participate in the Section 8 program in ZIP 71357.
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.