Location: Claiborne Parish, LA | Metro: Monroe, LA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $690 |
| 1 Bedroom | $720 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,190 |
| 4 Bedrooms | $1,270 |
| 5 Bedrooms | $1,473 |
| 6 Bedrooms | $1,650 |
| 7 Bedrooms | $1,782 |
| 8 Bedrooms | $1,871 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 71749 focuses on the financial implications for landlords and small-portfolio investors considering the Section 8 program. The Fair Market Rent (FMR) for a two-bedroom apartment in this area for FY 2024 is set at $860 per month. When annualized, this equates to an income of $10,320 per year. In contrast, the market rent based on Census ACS data is $747 per month, translating to an annual income of $8,964.
To derive the gross yield, we would typically compare these rental incomes against the median home value. However, for ZIP 71749, the median home value is listed as N/A, which complicates the direct calculation of a cap rate. Despite this limitation, we can still analyze the potential returns relative to the investment required for properties in this area.
The implied gross yield from the Section 8 FMR is higher compared to the market rent scenario. This suggests that participating in the Section 8 program could offer a better return on investment for landlords willing to accept government-subsidized rents. Given the annualized FMR of $10,320 versus the market rent of $8,964, the difference is significant and directly impacts the potential income from a property.
ZIP 71749 has a renter density of 16.4%, indicating that a relatively small portion of the population are renters. This factor should be considered when evaluating the demand for rental properties, including those under the Section 8 program. Additionally, the N/A-day Days on Market (DOM) figure means there's insufficient data to determine how quickly properties are rented out, which could affect the vacancy rate and overall profitability.
In conclusion, while the median home value is unavailable, the annualized FMR of $10,320 provides a higher gross yield than the market rent of $8,964. For landlords looking to maximize their income and who are comfortable with the requirements of the Section 8 program, the higher FMR could be more attractive. However, the lower renter density and unknown DOM suggest that there might be challenges in finding tenants, especially those eligible for Section 8, which could influence the decision-making process for investors.
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.