Location: Natchitoches Parish, LA | Metro: Alexandria, LA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $660 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,220 |
| 4 Bedrooms | $1,460 |
| 5 Bedrooms | $1,694 |
| 6 Bedrooms | $1,897 |
| 7 Bedrooms | $2,049 |
| 8 Bedrooms | $2,151 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 71455 reveals key insights into the potential Section 8 cap rates and gross yields for landlords and small-portfolio investors.
The Fair Market Rent (FMR) for a two-bedroom apartment in ZIP 71455 for FY 2024 is set at $1000 per month. This annualizes to $12,000 per year. Given that the median home value is not available, we must consider the implications of this data gap. However, the 74.4% renter density suggests a strong demand for rental properties in the area.
In the absence of market rent data, let's assume a hypothetical market rent scenario. For example, if the market rent were $1,200 per month, this would annualize to $14,400. The implied gross yield for the Section 8 scenario would be calculated based on the $1000 monthly payment. If we take the average home value in similar areas as a proxy, let's assume a home value of $200,000. This gives us an implied gross yield of 6% ($12,000 / $200,000).
For the market rent scenario at $1,200 per month, the implied gross yield would be 7.2% ($14,400 / $200,000). This shows that, in terms of gross yield, the market rent scenario is more favorable by 1.2 percentage points.
However, the decision between Section 8 and market rent should also consider other factors such as the duration of tenancy, property maintenance costs, and administrative burdens. Section 8 tenants often have longer tenancies, which can provide stability. Conversely, market rents might fluctuate more, but the higher gross yield compensates for this risk.
The Days on Market (DOM) data being unavailable complicates the analysis, as it would indicate how quickly properties are rented out. However, with a high renter density, it's reasonable to expect a relatively quick turnover in rentals, even without specific DOM figures.
In conclusion, while the market rent scenario offers a higher gross yield, the Section 8 program provides a stable income source that could be attractive for landlords seeking consistent cash flow.
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.