Location: Kingfisher County, OK | Metro: Oklahoma City, OK HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,050 |
| 1 Bedroom | $1,160 |
| 2 Bedrooms | $1,470 |
| 3 Bedrooms | $1,850 |
| 4 Bedrooms | $2,140 |
| 5 Bedrooms | $2,482 |
| 6 Bedrooms | $2,780 |
| 7 Bedrooms | $3,002 |
| 8 Bedrooms | $3,152 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,850 | $295,417 | 0.63% | D |
| 4BR | $2,140 | $398,791 | 0.54% | F |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate scenario for ZIP code 73016 reveals a distinct gap between the federally determined Fair Market Rent (FMR) and the actual market rents. For a two-bedroom property, the annualized FMR for FY 2024 stands at $1170 per month, while the market rent according to the Census ACS is $1330 per month. Given the median home value in the area is $328,653, we can derive the gross yield for both rent scenarios.
First, using the FMR of $1170 per month, the annual rental income would be $14,040. Dividing this by the median home value yields a gross yield of approximately 4.27%. This calculation reflects the potential income if the property were rented exclusively under Section 8 guidelines.
Second, applying the market rent of $1330 per month, the annual rental income increases to $15,960. The gross yield in this case is about 4.86%, indicating a higher return when compared to the FMR scenario.
The difference between these two gross yields highlights the financial impact of renting properties under Section 8 versus market rates. However, considering the local rental market conditions, it's important to evaluate which scenario is more realistic. In ZIP 73016, the renter density is 16.0%, suggesting that a significant portion of the population owns homes rather than renting. This low renter density implies that the demand for rental properties might not be as high, making it challenging to consistently rent properties at market rates.
The Days on Market (DOM) figure being N/A suggests there isn't enough recent data to provide a clear indication of how quickly rental properties are typically leased in this area. However, with the known renter density, it's reasonable to assume that the market rent scenario could face challenges in maintaining occupancy rates, especially if the majority of renters are seeking government assistance through programs like Section 8.
In conclusion, while the market rent of $1330 per month offers a higher gross yield of 4.86%, the lower renter density and the potential difficulty in finding tenants willing to pay above the FMR suggest that the FMR-based gross yield of 4.27% is more likely to represent a stable income stream for landlords and small-portfolio investors in ZIP 73016. Investors should consider these factors when evaluating the potential returns of properties in this area.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.