Location: Caddo County, OK | Metro: Caddo County, OK
| Unit Size | Monthly FMR |
|---|---|
| Studio | $700 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,160 |
| 4 Bedrooms | $1,200 |
| 5 Bedrooms | $1,392 |
| 6 Bedrooms | $1,559 |
| 7 Bedrooms | $1,684 |
| 8 Bedrooms | $1,768 |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 73042 revolves around the significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2026, the FMR stands at $940, while the Census ACS reports the market rent at $704. This creates a $236 difference, or a 33.5% gap, favoring landlords who can leverage this discrepancy to their advantage.
Voucher tenants under the Section 8 program can be seen as a yield play due to the higher FMR compared to the market rent. Landlords accepting Section 8 vouchers receive government subsidies that cover the difference between the market rent and the FMR, ensuring a rental income closer to the higher FMR. Given that only 20.8% of residents are renters, there is a competitive edge for those who can attract voucher tenants, especially considering the median home value of $118,462 and the median income of $55,556. These factors indicate a relatively stable local economy, which supports the reliability of the government payments.
The cost of housing voucher tenants below open-market rates is minimal for landlords, as the government compensates for the difference. Thus, even though the market rent is lower at $704, landlords can still achieve an effective rental rate of $940 through the voucher program. This makes ZIP 73042 an attractive investment area for landlords and small-portfolio investors looking to capitalize on the Section 8 program's benefits without the risk of renting below market rates.
In summary, the gap between the FMR and market rent in ZIP 73042 presents a clear opportunity for landlords to increase their yields by participating in the Section 8 program. The economic context of the area, characterized by a low percentage of renters and a solid median income, further enhances the appeal of this strategy.
Data Sources: FMR data from HUD (2027). 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.