Location: Winn Parish, LA | Metro: Alexandria, LA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $700 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,380 |
| 5 Bedrooms | $1,601 |
| 6 Bedrooms | $1,793 |
| 7 Bedrooms | $1,936 |
| 8 Bedrooms | $2,033 |
U.S. Census Bureau data (2024)
The classification of ZIP code 71454 hinges on the interplay between its yield potential and stability metrics. With a Fair Market Rent (FMR) of $820 for the fiscal year 2024, compared to a market rent of $1,036, the area offers a significant opportunity for rental income. The disparity between FMR and market rent suggests that landlords can potentially command higher rents than the government-set standards, thereby increasing their yield.
However, the median home value in ZIP 71454 stands at $106,253. This figure is crucial when assessing the overall investment strategy, as it indicates the initial capital outlay required for acquiring properties in this area. When juxtaposed against the average household income of $59,833, it becomes evident that the area has a relatively affordable housing market, which can be attractive for first-time buyers or those seeking lower-cost housing solutions. This dynamic can influence the stability of rental income, as there might be competition from homebuyers who can afford the local property values.
Stability in the rental market is further complicated by the fact that only 17.8% of residents are renters. This low percentage of renters implies a smaller pool of potential tenants, which could lead to increased vacancy rates and reduced cash flow stability. Additionally, the lack of data on the number of days on market (DOM) makes it challenging to predict how quickly properties might be rented or sold, adding another layer of uncertainty to the investment profile.
In summary, ZIP 71454 leans towards being a high-yield/low-stability market. The ability to charge above the FMR and the relatively low median home value suggest good returns on investment. However, the limited number of renters and incomplete data on market dynamics indicate that this area may not provide the most stable rental income. Landlords and small-portfolio investors should proceed with caution, considering the potential for fluctuating occupancy levels and competitive pressures from the homebuying market.
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.