New Orleans has long been a city where renters make up a large portion of the population—currently over 50%—and that number continues to grow. In 2025, median rents are hovering around $1,395 for a one-bedroom unit, and many residents are considered rent-burdened due to stagnant income growth and rising housing costs.
This ongoing affordability crisis underscores the need for more rental options across the city. While the short-term rental market has contracted due to increased regulation, demand for long-term and flexible housing remains high. With relatively low property taxes, a steady flow of students, healthcare workers, and service industry employees, and strong cultural appeal, New Orleans continues to offer promising opportunities for landlords committed to navigating its distinct housing ecosystem.
New Orleans’ job market and growth drivers
New Orleans’ economy is diverse, with both long-standing and emerging industries supporting rental demand. Its job market reflects the city’s mix of tradition and innovation, from tourism to healthcare to tech-enabled creative sectors.
Key industries include:
- Tourism and hospitality: Events like Mardi Gras and Jazz Fest, along with year-round attractions, make New Orleans a global destination with consistent tourism demand.
- Healthcare: Ochsner Health, LCMC Health, and the University Medical Center are major employers, driving demand for housing near medical campuses.
- Education: Tulane University, Xavier University, and other institutions draw students, faculty, and researchers who need seasonal and long-term rentals.
- Maritime and logistics: The Port of New Orleans fuels a robust trade and logistics economy that supports housing demand from blue-collar and contract workers.
- Arts and entertainment: A vibrant music, film, and visual arts scene—supported by tax incentives—brings short- and medium-term residents into the city throughout the year.
Newer trends, such as sustainability initiatives and energy-efficient rehabs, are starting to take root in the city’s rental market, especially among landlords looking to reduce costs and appeal to eco-conscious tenants.
Understanding zoning and rental regulations in New Orleans
Before investing in New Orleans real estate, it’s critical to understand the city’s regulatory environment, which can vary significantly by neighborhood and property type.
- Short-term rentals (STRs): As of 2025, STRs in residential neighborhoods are limited to owner-occupied properties or commercial zones. A citywide permit cap restricts the number of STRs allowed per square block. Many former STR properties are now transitioning into long-term rentals, increasing supply in some neighborhoods.
- Long-term rentals: These remain a stable and essential part of the city’s housing market, especially in areas near universities, hospitals, and job hubs.
- Coliving rentals: Coliving rental models like PadSplit are allowed in most parts of the city but must follow zoning rules, occupancy limits, and—in some areas—historic preservation guidelines.
Staying up-to-date with these rules isn’t just a best practice—it’s essential for avoiding fines and ensuring a sustainable rental operation.
Best neighborhoods for long-term rentals
Gentilly
- Why invest? Gentilly is a quiet, residential area known for its affordability, larger lots, and community feel. It appeals to families and long-term renters who are priced out of more central neighborhoods.
- Rental market insight: Single-family homes and duplexes in Gentilly tend to have low turnover and high demand, especially among educators and older renters.
- Best property types: Mid-century homes, duplexes, and small multifamily units.
- Ideal tenants: Families, teachers, and renters looking for stability in a more suburban setting.
Broadmoor
- Why invest? Centrally located and rich with historic character, Broadmoor offers access to top employers like Ochsner and Tulane, as well as quick commutes to downtown.
- Rental market insight: A popular choice for students, professionals, and hospital workers, Broadmoor offers solid rental performance for well-maintained units.
- Best property types: Shotgun homes, duplexes, and small apartment buildings.
- Ideal tenants: Healthcare staff, graduate students, and professionals seeking walkable neighborhoods with strong community ties.
Best neighborhoods for short-term rentals
Central Business District (CBD)
- Why invest? The CBD is one of the few zones where commercial short-term rentals are still permitted. With proximity to the Superdome, convention center, and downtown hotels, it caters to year-round visitors.
- Rental market insight: Licensed STRs in the CBD benefit from high occupancy and premium nightly rates, though compliance with permitting is essential.
- Best property types: Modern condos, lofts, and mixed-use buildings that allow STRs.
- Ideal guests: Business travelers, convention attendees, and tourists looking for premium downtown accommodations.
Faubourg Marigny
- Why invest? Just steps from the French Quarter, this neighborhood blends historic charm with a bohemian, artsy atmosphere.
- Rental market insight: While zoning is strict, licensed commercial STRs in Marigny still perform well. The area draws cultural tourists year-round.
- Best property types: Owner-occupied homes with guest units or mixed-use commercial properties.
- Ideal guests: Festivalgoers, creatives, and tourists seeking an immersive, walkable New Orleans experience.
Best neighborhoods for coliving rentals
Mid-City
- Why invest? Centrally located with excellent access to hospitals, universities, and transit, Mid-City is ideal for shared housing and workforce renters.
- Rental market insight: Homes with multiple bedrooms and shared amenities meet growing demand from students, contract workers, and healthcare staff.
- Best property types: Large single-family homes, double-shotguns, and homes with accessory units.
- Ideal tenants: Gig workers, nurses, students, and renters seeking affordability and convenience.
Algiers
- Why invest? Located across the river from downtown, Algiers offers more space and lower prices, making it attractive for landlords and tenants alike.
- Rental market insight: The area is growing in popularity among renters priced out of core neighborhoods, particularly those seeking quiet, affordable housing.
- Best property types: 3–5 bedroom ranch-style homes, duplexes, and properties with common space for coliving setups.
- Ideal tenants: Essential workers, families, and individuals looking for stability and value.
Emerging neighborhoods to watch
Bywater
- Why invest? With its colorful architecture, creative scene, and riverfront location, Bywater is attracting young professionals and remote workers.
- Rental market insight: Long-term rentals and shared housing options are becoming more popular as STR restrictions limit inventory.
- Best property types: Shotgun homes, renovated multifamily buildings, and artist-friendly spaces.
- Ideal tenants: Creatives, digital nomads, and couples looking for community and culture.
Riverbend
- Why invest? Nestled near Carrollton and the St. Charles streetcar line, Riverbend offers charm and connectivity. It’s a top choice for students and young renters.
- Rental market insight: The area continues to appreciate thanks to its proximity to Tulane and Loyola.
- Best property types: Small cottages, duplexes, and multi-bedroom units with outdoor space.
- Ideal tenants: Students, young professionals, and first-time renters looking for neighborhood appeal and convenience.
Financing and tax considerations for New Orleans landlords
- Financing options: Investors often utilize DSCR loans, renovation loans, or seller financing due to the city’s older housing stock.
- Property tax impact: Louisiana’s property taxes are relatively low, helping to offset other expenses like insurance and maintenance.
- Insurance and climate risk: Flooding, hurricanes, and an aging infrastructure contribute to rising insurance premiums. FEMA’s Risk Rating 2.0 has increased costs for many property owners in flood-prone zones.
Make the most of New Orleans’ rental market
New Orleans offers a diverse and evolving landscape for rental property investors. From family-friendly neighborhoods like Gentilly to emerging hot spots like Bywater, the city presents multiple paths to rental income—whether through long-term leases, coliving arrangements, or compliant short-term rentals in designated zones.
Success in this market requires more than just location awareness. Landlords who stay ahead of regulatory changes, understand local tenant needs, and invest in sustainable, flood-resilient properties are best positioned for long-term profitability. In a city where housing demand is high and affordability is a growing concern, the right rental strategy can provide both financial returns and a meaningful contribution to the local community.
Join PadSplit today to increase your rental revenue while providing affordable housing solutions in New Orleans’ most in-demand neighborhoods.
The information provided in this blog post is for general informational purposes only. It should not be construed as legal, financial, or professional advice. The content is intended to provide general guidance and should not be relied upon for making specific decisions.
PadSplit strongly recommends consulting with qualified legal counsel, licensed financial advisors, tax professionals, or other relevant experts for advice concerning your specific situation and investment needs. PadSplit makes no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, or suitability of the information contained in this post.
