Location: Sabine Parish, LA | Metro: Sabine Parish, LA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $730 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $900 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 71406 focuses on the disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2026, the FMR is set at $890. However, the market rent data for this area is currently unavailable, which poses a significant challenge for landlords and small-portfolio investors looking to understand the financial landscape.
In the absence of market rent figures, it's critical to consider the implications of the FMR alone. Given that the FMR represents the maximum amount that HUD will pay for rental assistance through the Section 8 program, landlords must evaluate whether accepting voucher tenants at this rate can still generate a positive yield. The FMR of $890 is the baseline payment for eligible tenants, but it does not reflect the full picture without knowing the market rent.
Assuming the FMR exceeds the market rent, which is a reasonable hypothesis given the lack of competing data, landlords would find themselves in a favorable position. Accepting Section 8 tenants at the FMR rate would mean they are receiving a rent that is higher than what might be available in the open market. This scenario transforms the property into a yield play, where landlords can achieve better returns by securing tenants who pay the FMR rather than the potentially lower market rates.
Conversely, if the market rent were to be higher than the FMR, landlords would face a different set of challenges. The cost of housing voucher tenants below open-market rates could result in a loss of potential revenue. In such a case, landlords would need to carefully weigh the benefits of guaranteed payments from the government against the risk of leaving money on the table compared to what could be earned from non-voucher tenants.
The ZIP code 71406 has a unique context that further complicates the analysis. With 0.0% of the population identified as renters, the area likely consists primarily of homeowners. The median home value and median income figures are also not provided, which means there's insufficient data to determine the overall economic health and housing demand dynamics of the area. Without these key metrics, it's challenging to provide a comprehensive assessment of how the FMR impacts the local real estate market.
To summarize, the decision to accept Section 8 tenants in ZIP 71406 should be based on an understanding of the local market conditions. If the FMR of $890 surpasses the actual market rent, it presents an opportunity for landlords to secure stable, above-market-rate tenancy. If the market rent is higher, landlords must consider the trade-offs carefully. The analysis is limited by the lack of complete data, particularly the median home value and median income, which are essential for a thorough evaluation of the investment potential.
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.