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 |
U.S. Census Bureau data (2024)
When considering whether to invest in ZIP code 71378 for Section 8 properties, follow this decision tree based on the provided data:
1) Does the Fair Market Rent (FMR) of $830 for the metro area in fiscal year 2026 cover the debt service on a property?
If the answer is yes, proceed to the next question. If no, purchasing a Section 8 property in ZIP 71388 is not financially viable due to insufficient rental income to meet mortgage obligations.
2) Is the market rent of $628 (as per Census ACS) above, at, or below the FMR?
The market rent of $628 is below the FMR of $830. This indicates that landlords may struggle to find tenants willing to pay the higher FMR rate set by the government for Section 8 vouchers. However, if the debt service can be covered by the FMR, the next consideration is demand.
3) Are 42.4% of residents renters, and is the number of days on the market (DOM) sufficient to indicate enough demand?
A significant portion of residents, 42.4%, are already renters, suggesting there is an established rental market. However, without specific data on the average days on the market (DOM), it's challenging to determine the speed at which properties are rented out. If the DOM is low, indicating quick rentals, this would support a positive outlook on demand. Conversely, high DOM values could signal difficulties in renting out properties.
Yes: If both the FMR covers the debt service and the market rent is below the FMR, but the rental demand is strong (low DOM), then investing in ZIP 71378 for Section 8 properties is advisable. The high FMR relative to market rates ensures that you receive a better rent than what the market offers.
No: If the FMR does not cover the debt service, or if the DOM is too high despite the percentage of renters, investing in this ZIP code is not recommended. Financial viability and demand are critical factors in ensuring a successful investment.
It Depends: If the FMR barely covers the debt service, and the DOM is moderate, further analysis is required. Consider other factors such as vacancy rates, competition, and the overall economic health of the ZIP code before making a decision.
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.