Location: Alexandria, LA | Metro: Alexandria, LA MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,480 |
| 5 Bedrooms | $1,717 |
| 6 Bedrooms | $1,923 |
| 7 Bedrooms | $2,077 |
| 8 Bedrooms | $2,181 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,350 | $225,095 | 0.6% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 71423 is centered around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR stands at $1050, while the Census American Community Survey (ACS) indicates a market rent of $958. This creates a positive gap of $92, which represents a 9.6% premium above the market rate.
This premium makes ZIP 71423 a favorable location for landlords and small-portfolio investors looking to maximize yields. The higher FMR allows property owners to charge more for rental units compared to the prevailing market conditions, ensuring a consistent and attractive return on investment. Given that only 16.6% of residents are renters, competition for rental properties is relatively low, allowing landlords to benefit from the voucher system without the risk of significant vacancy rates.
The median home value in the area is $196,240, and the median household income is $71,729. These figures suggest that homeownership is a common choice, but for those who rely on housing vouchers, the cost of housing is effectively subsidized below the open-market rates. Landlords can take advantage of this situation by accepting voucher tenants, knowing they will receive a guaranteed payment at the FMR level, which is higher than what they could potentially get from non-voucher tenants in the current market environment.
To summarize, the $92 gap between the FMR and the market rent in ZIP 71423 translates into an opportunity for landlords to earn a higher yield. The voucher system supports tenants, making it easier for them to afford rents at the FMR level, which is advantageous for property owners in this ZIP code.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.