1st Advantage MortgageLafayette is a LA market where the rent-to-payment ratio decides the loan. Median rent is $1,100, median home value is $257,000 and 47% of households rent.
Local data for Lafayette investors
Median gross rent in Lafayette: $1,100, close to the Louisiana median of $1,064. Median owner-occupied home value: $257,000, about 19% above the Louisiana median of $216,500. Those are citywide medians, so an individual address can sit well on either side of them. A quick screen: twelve months of Lafayette median rent over its median home value equals 5.1%, on the low side, so the payment, not the rent, usually decides whether a file clears. Use it to compare markets, then replace it with real rent evidence for the address.
| Indicator | Louisiana | Lafayette | Difference |
|---|---|---|---|
| Share in 2-4 unit buildings | 7.9% | 7.2% | -9% |
| Share of homes detached | 65.3% | 62.9% | -4% |
| Long commuters, 45 min plus | 15.2% | 7.6% | -50% |
| Degree holders, age 25+ | 27.0% | 41.1% | +52% |
| Workers on their own account | 10.6% | 13.4% | +26% |
| Renters paying 30%+ of income | 54.8% | 50.6% | -8% |
| Typical construction year | 1983 | 1981 | |
| Annual rent divided by value | 5.9% | 5.1% | -13% |
| Households that rent | 32.6% | 46.9% | +44% |
| Tax as a share of home value | 0.55% | 0.58% | +6% |
| Annual property tax bill, median | $1,180 | $1,482 | +26% |
| Household income, median | $60,756 | $61,915 | +2% |
| Typical owner-occupied value | $216,500 | $257,000 | +19% |
| Typical monthly rent | $1,064 | $1,100 | +3% |
| Residents (Census estimate) | 4,611,961 | 121,715 |
The renter share is 46.9% in Lafayette, well above the Louisiana median of 33%, a sizable rental market. The median household brings in $61,915 (close to the Louisiana median of $60,756), with 51% of renters paying 30 percent or more of income toward rent.
The kind of housing in Lafayette
Single-family detached housing accounts for 63% of the units counted in Lafayette, so expect house-style comparables in most appraisals. With 1981 as the median build year, expect aging HVAC and roofs and ask for the dates of the last replacements.
Roughly 11% of units in Lafayette sit vacant, and the share of rentals available for rent is 6.3% at the survey's snapshot.
What the data means for Lafayette buyers
At 5.1% gross, Lafayette is a tight market for DSCR math, and investors often turn to interest-only structures, higher rents on renovated units or small multifamily to make the ratio clear. Mid-aged stock (median built 1981) means many roofs and HVAC units are near the end of their lives, so ask for installation dates. Renters are 47% of households, which gives investors a real tenant base to market to.
Carrying costs in Lafayette
Real estate taxes are a line the rent has to cover. The median owner in Lafayette pays $1,482 a year (well above the Louisiana median of $1,180), which is about 0.58% of the median home value. In rent terms, the tax bill equals roughly 11% of twelve months of median rent.
Insurance follows risk. FEMA's National Risk Index lists Lafayette County as relatively high overall, with lightning (very high), hurricanes (very high) and cold waves (relatively high) as the main drivers.
| Hazard in Lafayette County, FEMA index | Level |
|---|---|
| Ice storms exposure | Relatively High |
| Cold waves exposure | Relatively High |
| Hurricanes exposure | Very High |
| Lightning exposure | Very High |
| Social vulnerability score | Relatively Low |
| Annualized loss estimate | Relatively High |
| Composite risk | Relatively High |
Many investors meet insurance too late, so get a quote tied to the Lafayette property's roof age and flood zone before you waive your inspection period.
Rent math for Lafayette buyers
Worked through with this city's own medians: rent of $1,100 against taxes of about $124 a month leaves $976 for principal, interest, insurance and dues at a 1.00 ratio, and $756 at a 1.25 ratio. That arithmetic is the whole game, and the real rent and quotes for your address replace these medians.
Rental rules for Lafayette, LA
Before you underwrite a Lafayette rental, confirm with city hall and Lafayette 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. Guests who book by the night in Lafayette are taxed under state law as follows. 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.
Plan for a 30 day return window on any Lafayette deposit once the tenant moves out. A landlord who wants a Lafayette month-to-month tenant out must give Written notice at least 10 calendar days before the end of the month of notice.
Lafayette compared with other Louisiana markets
Other Louisiana markets on this site show median values from $205,900 (Houma) to $327,500 (Metairie); Lafayette is $257,000.
| Market | Renter share | Tax bill | Home value | Residents | Rent |
|---|---|---|---|---|---|
| Houma | 28% | $778 | $205,900 | 32,392 | $1,058 |
| Metairie | 38% | $1,814 | $327,500 | 139,729 | $1,175 |
| Hammond | 54% | $1,209 | $221,400 | 21,539 | $1,061 |
| Lafayette | 47% | $1,482 | $257,000 | 121,715 | $1,100 |
The renter base in Lafayette
About 13.4% of Lafayette workers are self-employed, the kind of borrowers whose tax returns understate cash flow and who often prefer a loan sized on rent. Around the edges, government workers are about 14% of employment, 41% of adults hold a bachelor's degree or higher and 8% of commuters travel 45 minutes or more.
Wikipedia's entry for Lafayette notes interstate access via I-49 and I-10 and air service through Lafayette Regional Airport, a practical point for tenants and owners alike.
Taking a Lafayette deal to a lender
Gather the lease or rent estimate, the tax estimate and an insurance quote for the Lafayette address, check them in the calculator, and begin your application or get a quote first.
More Louisiana markets
- All Louisiana DSCR loans
- DSCR loans in Hammond, LA
- DSCR loans in Metairie, LA
- DSCR loans in Houma, LA
- Every market we cover
Where these facts come from
- Census Bureau ACS 5-year 2020 to 2024 tables
- Federal hazard index, LA
- Background reading: Lafayette, Louisiana
- Lafayette landlords: see La. R.S. 9:3251, 9:3252, 9:3254
- Louisiana tax source: Louisiana Department of Revenue FAQ
Census figures are 2020 to 2024 ACS five-year estimates for Lafayette and carry margins of error. Louisiana landlord-tenant summaries draw on the RedFlagLease dataset (CC BY 4.0) and the statutes linked above. Facts were checked in October 2026, and rules change.
Quick file checklist
Ask the seller for twelve months of utility bills and any lease on the Lafayette property, confirm who pays water, trash and lawn care, and get the insurance quote before the inspection period ends so the ratio is tested on real numbers.
DSCR loan availability varies by property and lender program and is not an offer to lend. See our disclosures.
Frequently asked questions
Lease or market rent: what counts in Lafayette?
On most files the lender uses the lower of the signed lease rent and the appraiser's market rent for the address in Lafayette. For orientation, the Census median gross rent here is $1,100 a month.
How is the DSCR figure built for a Lafayette property?
Taxes, insurance and dues are inside the payment the lender tests. Run $1,100 through a 1.25 ratio and the ceiling is about $880; subtract $124 for median taxes and $756 remains.
How much real estate tax do Lafayette homeowners pay a year?
Median taxes paid are $1,482 a year, or 0.58% of median value, compared with 0.55% statewide. Ask Lafayette Parish's tax office what the bill becomes after your sale.
Will a lender count nightly rental income at a Lafayette property?
Yes on programs built for it, once the use is lawful in Lafayette. Gather twelve months of statements or a third-party projection, and have Louisiana tax registration squared away.
When must a Lafayette landlord return a deposit?
Return is due within 30 days after the tenant leaves. The governing section is La. R.S. 9:3251, 9:3252, 9:3254.
What hazard risk does Lafayette carry for investors?
Overall risk is rated relatively high for the county. Because the rating covers a whole county, look up the specific property on FEMA's flood map before you offer.
Can I close a Lafayette DSCR loan in an LLC?
Many Lafayette investors do, though no rule forces it. The loan is secured by the property either way, and the lender will check who controls the company.