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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,350 | $231,187 | 0.58% | F |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in ZIP 71424 through Section 8 are significant and should be carefully considered before committing to this market. Firstly, tenant turnover is a critical issue, as the market rent is currently unknown but the Fair Market Rent (FMR) stands at $950 for fiscal year 2024. This means that landlords will have to adjust their expectations based on the actual market conditions, which can lead to instability in rental income. Secondly, the vacancy exposure in this area is concerning due to the lack of data on the days on market (DOM), indicating that it might be difficult to fill vacancies promptly, especially if the market rent is lower than the FMR. Thirdly, the deferred maintenance exposure is substantial. With a typical home value of $179,812 and a median income of $56,179, many homeowners may struggle to keep up with necessary repairs and upgrades, potentially leading to properties that do not meet the required standards for Section 8 tenancy.
Despite these challenges, there are factors that mitigate the risks. The renter share in ZIP 71424 is 4.2%, which suggests a high concentration of renters. High renter density often correlates with higher demand for housing vouchers, making it easier to find tenants who qualify for Section 8. Additionally, the presence of a significant number of renters implies a stable tenant pool, which can help in maintaining occupancy rates.
Verdict: Moderate risk for a first-time Section 8 landlord.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.