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RE Intelligence

Rental numbers for ZIP 70435 (Covington, LA)

Negative cash flow at any interest rate with 25% down: the rent does not cover operating costs and principal.

Rent here is HUD's Fair Market Rent for a 2-bedroom, because Zillow does not publish a rent index for this ZIP. It is the 40th percentile of gross rents, so market rent for a typical home is likely higher and the yield and cash flow below are conservative.
Gross yield
5.3%
rent x 12 / price
Est. cap rate
1.7%
NOI / price
Cash flow
-$1,228/mo
at 7.78%, 25% down
Typical price
$306,000
Zillow ZHVI, Aug 2026
HUD Fair Market Rent
$1,340/mo
HUD Fair Market Rent, 2 bedroom, FY2026

The pro forma

Typical home, default assumptions

Income and expenses, per year
OperatorLineAmountSource
Gross rent$16,080
Vacancy$804
Management$1,222
Property tax$2,280
Insurance$3,632
Maintenance$3,064
Net operating income$5,078
Loan payments$19,814
Cash flow-$14,736
Purchase and loan
OperatorLineAmountSource
Typical price$306,420
Down payment (25%)$76,605
Loan$229,815
Rate7.78%
Monthly payment$1,651
Cash in$85,798
Cash-on-cash return-17.2%
DSCR0.26
Break-even ratenone
Down payment25%
A common minimum for investment-property and DSCR loans.
Interest rate7.78%
Freddie Mac 30-year 7.03% (week of 2026-09-24) + 0.75 point investor premium.
Loan term30 years
Fixed, fully amortising.
Closing costs3% of price
Added to cash invested.
Insurance$3,632 a year
NAIC 2023 average homeowners (HO-3) premium for Louisiana, $3,027, x 1.2 for a landlord policy.
Maintenance1% of price a year
The 1% rule of thumb; older homes run higher.
Vacancy5% of rent
About 18 days empty a year.
Management8% of collected rent
A typical full-service fee; zero if you self-manage.

Trends

Five years to August 2026

Price, 12 months
+0.9%
Rent, 12 months
n/a
no Zillow rent series here
Rent minus price growth
n/a
positive means yields are improving
Typical value (Zillow ZHVI)Indexed to 100 at Aug 2021
10010511011520222023202420252026
Show the numbers
MonthTypical value
Aug 2021$288,421
Aug 2022$320,378
Aug 2023$306,740
Aug 2024$303,987
Aug 2025$303,692
Aug 2026$306,420

Rent references

Two sources, never blended

SourceStudio1 bed2 bed3 bed4 bed
HUD Small Area FMR, FY2026$970$1,120$1,340$1,710$2,000
Zillow observed rent, Aug 2026not published for this ZIP

HUD's Fair Market Rent is the 40th percentile gross rent (rent plus utilities) for a standard unit, and it is what Section 8 vouchers pay against. Zillow's index tracks asking rents on listed homes. The two measure different things, so they are shown side by side and never averaged. HUD area: Hammond, LA MSA.

Property tax

Effective rate
0.74%
ZIP area, ACS
At the typical price
$2,280/yr

Median real estate taxes paid divided by median home value, Census ACS 2020 to 2024. St. Tammany Parish: 0.71%. Actual bills depend on the assessment, exemptions and any non-homestead rate.

Supply

Permits per 1,000 households
10.6
St. Tammany Parish, last 12 months
National percentile
73th
among US counties

1,114 new housing units permitted in 2025-09 to 2026-08, Census Building Permits Survey. A high figure means more new supply competing for tenants.

Nearby ZIP codes

ZIPDistanceTypical priceRentGross yieldCash flow /mo
70433Covington7.1 mi$341,000$1,4915.2%-$1,330
70437Folsom7.5 mi$305,000$1,340*5.3%-$1,142
70431Bush9.2 mi$294,000$1,600*6.5%-$867
70420Abita Springs10.4 mi$281,000$1,340*5.7%-$1,035
70471Mandeville10.9 mi$402,000$1,3794.1%-$1,872
70447Madisonville11.1 mi$376,000$2,000*6.4%-$1,144
70455Robert13.1 mi$232,000$1,120*5.8%-$846
70448Mandeville14.0 mi$339,000$1,9466.9%-$918

* HUD Fair Market Rent, 2 bedroom (no Zillow rent index for that ZIP).

Every ZIP in St. Tammany ParishNew Orleans, LA metroLouisiana

Run the numbers on a real listing

The calculator opens with this ZIP's figures. Swap in a listing's price and rent, your rate and your costs.

Open the calculator for 70435

Questions

Is 70435 good for rental property?
On the typical home here, priced at $306,000 and renting for $1,340 a month (HUD Fair Market Rent, 2 bedroom, FY2026), the gross yield is 5.3% and the estimated cap rate is 1.7%. At a 7.78% investor rate with 25% down, estimated cash flow is -$1,228 a month. The median gross yield across the 8,418 ZIP codes with full Zillow data is 5.6%. These are figures for a typical property, not a judgement on any particular one.
What is the typical rent in 70435?
Zillow does not publish a rent index for 70435. HUD's FY2026 Small Area Fair Market Rent for a 2-bedroom here is $1,340, the 40th percentile of gross rents and the basis for Section 8 payment standards.
What is the property tax rate in 70435?
The effective property tax rate is about 0.74% of value (median taxes paid divided by median home value, Census ACS 2020 to 2024). On the typical $306,000 home that is about $2,280 a year. Your bill depends on the assessment and local exemptions.
What interest rate makes a rental in 70435 break even?
With the default assumptions, no interest rate brings cash flow to zero: rent does not cover operating costs plus principal on a 30-year loan with 25% down.
How fast are prices and rents changing in 70435?
Over the 12 months to August 2026, the typical home value changed +0.9%.

Sources and method

Data: Zillow Research (ZHVI, ZORI), HUD, US Census Bureau, Freddie Mac. Every formula is on the methodology page.

Estimates from public data for a typical property. Not investment, tax or legal advice. Your property, financing and costs will differ.