Location: Payne 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 | $710 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,370 |
| 5 Bedrooms | $1,589 |
| 6 Bedrooms | $1,780 |
| 7 Bedrooms | $1,922 |
| 8 Bedrooms | $2,018 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,250 | $274,611 | 0.46% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 73027 might have several valid concerns regarding the feasibility of investing in this area, particularly when it comes to Section 8 properties. Let's address these concerns with the available data.
Objection 1: Will Fair Market Rent (FMR) of $920 for the fiscal year 2024 cover the mortgage on a $187,202 home?
The FMR of $920 is the maximum amount that HUD will pay landlords for rental units in ZIP 73027. To determine if this covers the mortgage, we need to consider the typical mortgage rates and terms. Assuming a 30-year fixed-rate mortgage at an average rate of 5%, the monthly payment on a $187,202 home would be approximately $1,015. This means that the FMR does not fully cover the mortgage payment, leaving a shortfall of $95 per month. However, this calculation does not take into account potential tax benefits and other incentives that could offset some of the costs.
Objection 2: Is there enough renter demand at 10.2%?
The rental vacancy rate of 10.2% suggests a moderate level of demand in ZIP 73027. A lower vacancy rate indicates higher demand, but 10.2% is not unusually high. In fact, it aligns with national averages, which can vary widely but often hover around this figure. While the data does not provide a complete picture of the tenant pool, the vacancy rate suggests that there is a reasonable amount of demand. Landlords should also consider the local economic conditions and employment rates to gauge future demand trends.
Objection 3: Will vouchers keep pace with market rents of $763?
The current market rent of $763 is below the FMR of $920, indicating that vouchers should cover the majority of market rents in ZIP 73027. However, whether vouchers will keep pace with future increases in market rents is uncertain. The data provided does not give insight into how voucher amounts adjust over time. It's important to monitor local housing authority policies and national trends in voucher adjustments to predict future financial viability.
In conclusion, while the data presents a mixed picture for ZIP 73027, it does offer a basis for decision-making. The FMR is insufficient to fully cover mortgage payments without additional cost-saving measures. The rental vacancy rate indicates a manageable level of demand, though further research into local economic factors is advisable. Lastly, current voucher amounts should cover most market rents, but vigilance is required to anticipate any changes in voucher policies that could affect future investments.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.