1st Advantage MortgageInvestors buying in Houma, LA are measured on the rent the property earns. Locally, median gross rent is $1,058 and median real estate taxes are $778 a year, which together set how much loan a rent can carry.
Houma rental market at a glance
Start with the two numbers every DSCR file turns on. Rent in Houma runs a median $1,058 a month (close to the Louisiana median of $1,064), and the median owner-occupied home is worth $205,900. Dividing a year of median rent by the median home value gives a gross rent-to-value ratio of 6.2%, neither especially thin nor especially rich. It mixes apartments and houses, so treat it as a compass and not as the number for any one property.
| Indicator | Louisiana | Houma | Difference |
|---|---|---|---|
| Tax as a share of home value | 0.55% | 0.38% | -31% |
| Household income, median | $60,756 | $58,194 | -4% |
| Typical owner-occupied value | $216,500 | $205,900 | -5% |
| Typical monthly rent | $1,064 | $1,058 | -1% |
| Persons per household | 2.49 | 2.41 | |
| Share in 2-4 unit buildings | 7.9% | 3.3% | -59% |
| Share of homes detached | 65.3% | 85.1% | +30% |
| Long commuters, 45 min plus | 15.2% | 9.4% | -38% |
| Degree holders, age 25+ | 27.0% | 23.8% | -12% |
| Workers on their own account | 10.6% | 8.9% | -16% |
| Renters paying 30%+ of income | 54.8% | 55.6% | +2% |
| Units sitting vacant | 14.4% | 10.7% | -26% |
| Annual rent divided by value | 5.9% | 6.2% | +5% |
| Households that rent | 32.6% | 27.6% | -15% |
| Residents (Census estimate) | 4,611,961 | 32,392 |
The renter share of 27.6% (about 15% below the Louisiana median of 33%) tells you most neighbors are owners, so rental demand is real but narrower than in a renter-heavy city. Against a median household income of $58,194 (close to the Louisiana median of $60,756), 56% of renters report rent at or above 30 percent of income.
Housing stock and vacancy in Houma
Houma is dominated by detached homes (85% of units), which keeps most rental income tied to house comparables and puts maintenance squarely on the owner. With 1973 as the median build year, expect aging HVAC and roofs and ask for the dates of the last replacements.
Use vacancy as a reality check: 11% of all units are vacant in Houma, and the rental vacancy rate is 2.9%.
Underwriting angles in Houma
With a 6.2% rent-to-value ratio, Houma deals tend to work when the buyer controls the price and carrying costs, and struggle when either runs above the median. Mid-aged stock (median built 1973) means many roofs and HVAC units are near the end of their lives, so ask for installation dates. An owner-heavy market (72% owner-occupied) means many tenants are renting by choice rather than necessity, so condition and schools matter to them.
Taxes and risk in Houma
The Census reports median real estate taxes paid of $778 in Houma, well below the Louisiana median of $1,180. Against the median value that is an effective rate of roughly 0.38%, compared with 0.55% for Louisiana as a whole. That is about 6% of a year of median rent gone to taxes before the loan is even counted.
Insurance follows risk. FEMA's National Risk Index lists Terrebonne County as relatively moderate overall, with hurricanes (very high), coastal flooding (relatively high) and tornadoes (relatively high) as the main drivers.
| Hazard in Terrebonne County, FEMA index | Level |
|---|---|
| Lightning exposure | Relatively High |
| Tornadoes exposure | Relatively High |
| Coastal flooding exposure | Relatively High |
| Hurricanes exposure | Very High |
| Social vulnerability score | Relatively Moderate |
| Annualized loss estimate | Relatively Moderate |
| Composite risk | Relatively Moderate |
Standard landlord policies usually exclude flood, and coastal ones can add a separate wind deductible, so ask the agent for Houma exclusions before trusting a premium estimate.
Rent math for Houma buyers
Try the math at the medians. With rent at $1,058 and taxes near $65 a month, a 1.00 DSCR leaves $993 for everything else in the payment, a 1.20 ratio leaves $817, and a 1.25 ratio leaves $782. Any real property will differ, but the exercise shows how little room insurance and dues can take.
Rules a Houma landlord should check
Before you underwrite a Houma rental, confirm with city hall and Terrebonne Parish whether landlords must register, pass an inspection or hold a permit, especially for stays under 30 days, because those rules can change what income a lender will count. For Houma short-term hosts, one state-level point stands out. Louisiana treats short-term rentals furnished to transient guests as taxable sleeping-room rentals, and platforms such as Airbnb must collect and remit state and local sales tax on Louisiana bookings.
Louisiana gives a landlord 30 days after the tenancy ends to return a deposit, an easy deadline to miss without a checklist. To end a month-to-month tenancy in Houma, the landlord's notice period is Written notice at least 10 calendar days before the end of the month.
Houma next to nearby cities
Among the nearby markets above, Kenner has the lowest median home value at $246,300 and Metairie the highest at $327,500, against $205,900 in Houma.
| Market | Renter share | Tax bill | Home value | Residents | Rent |
|---|---|---|---|---|---|
| New Orleans | 49% | $2,606 | $315,700 | 371,853 | $1,251 |
| Metairie | 38% | $1,814 | $327,500 | 139,729 | $1,175 |
| Kenner | 37% | $933 | $246,300 | 64,904 | $1,179 |
| Houma | 28% | $778 | $205,900 | 32,392 | $1,058 |
Tenants, jobs and anchors in Houma
Self-employed workers, incorporated or not, make up 8.9% of employed residents, a group that often has irregular tax-return income and a natural fit with rent-based qualification. Looking at who fills the rentals, government workers are about 12% of employment, 24% of adults hold a bachelor's degree or higher and 9% of commuters travel 45 minutes or more.
For getting around, Houma has air service through Houma-Terrebonne Airport, which matters to commuters and to out-of-town owners planning a visit.
Moving from numbers to a Houma loan
Run the Houma rent, tax and insurance figures through the DSCR calculator. When they clear the ratio, start an application or ask for a quote.
More Louisiana markets
- All Louisiana DSCR loans
- DSCR loans in Kenner, LA
- DSCR loans in Metairie, LA
- DSCR loans in New Orleans, LA
- Every market we cover
Where we checked
- ACS 2020 to 2024 estimates for Houma
- FEMA county hazard table
- Houma overview (Wikipedia)
- Text of La. R.S. 9:3251, 9:3252, 9:3254 for Houma landlords
- State rule cited for Houma hosts: Louisiana Department of Revenue FAQ
Census figures are 2020 to 2024 ACS five-year estimates for Houma and carry margins of error. Louisiana landlord-tenant summaries draw on the RedFlagLease dataset (CC BY 4.0) and the statutes linked above. Reviewed in October 2026, with no promise that rules have stayed put.
Before you make an offer
For a Houma rental, request the current lease, the last tax bill and the insurance declarations page early, and confirm which utilities the tenant pays, because each one changes the monthly figure a lender compares with the rent.
DSCR loan availability varies by property and lender program and is not an offer to lend. See our disclosures.
Frequently asked questions
What rent number goes into a Houma, LA DSCR calculation?
Expect to supply a lease, or let the appraiser's rent schedule stand in for one; the Houma median rent of $1,058 is context and not a substitute.
Do taxes and insurance count in the Houma DSCR ratio?
Taxes, insurance and dues are inside the payment the lender tests. Run $1,058 through a 1.25 ratio and the ceiling is about $846; subtract $65 for median taxes and $782 remains.
What does Terrebonne Parish charge in property tax, in practice?
About $778 a year at the median, which is 0.38% of value and well below the Louisiana median of $1,180. Reassessment after a purchase can move that number, so get an estimate for the actual price.
Can I use Airbnb income to qualify in Houma?
Where lender guidelines allow it, yes, with platform history or a market projection. First confirm that Houma and any HOA permit stays under 30 days, and that you can register for Louisiana lodging tax.
What does Louisiana law say about deposits at a Houma rental?
Start with La. R.S. 9:3251, 9:3252, 9:3254. Return window: 30 days. Talk to a Louisiana attorney for a lease form that matches.
What does FEMA say about hazard risk near Houma?
The county scores relatively moderate overall in FEMA's index, with hurricanes leading. Parcel-level flood maps and a real insurance quote give the answer that counts.
Can I close a Houma DSCR loan in an LLC?
It is optional. Lenders will close in a properly formed LLC and generally want the members to guarantee. Ask your accountant how a LA entity would be taxed.