Location: Custer County, OK | Metro: Blaine County, OK
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 | $720 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $950 |
| 3 Bedrooms | $1,190 |
| 4 Bedrooms | $1,420 |
| 5 Bedrooms | $1,647 |
| 6 Bedrooms | $1,845 |
| 7 Bedrooms | $1,993 |
| 8 Bedrooms | $2,093 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $950 | $96,804 | 0.98% | C |
| 3BR | $1,190 | $202,475 | 0.59% | F |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP code 73048 (Hydro, OK) for Section 8 investment, follow this decision tree:
1) Does the Fair Market Rent (FMR) of $1,000 (for metro FY 2026) clear debt service on a $161,008 property?
If the annual rental income of $12,000 ($1,000 per month) exceeds the total debt service costs (principal and interest payments) on a $161,008 property, then the answer is yes. For instance, if the mortgage payment is $900 per month, leading to an annual debt service of $10,800, the FMR would cover the debt service with a surplus. However, if the debt service is higher, say $1,200 per month or $14,400 annually, then the FMR does not clear debt service, and the answer is no.
2) Is the market rent of $782 (from Census ACS) above, at, or below the FMR?
The market rent of $782 is below the FMR of $1,000. This suggests that properties in Hydro, OK can potentially be rented out at rates higher than what the market currently offers, making it a favorable situation for landlords seeking to capitalize on Section 8 housing opportunities.
3) Are 23.8% renters and N/A-day days on market (DOM) enough demand?
The percentage of renters at 23.8% indicates a moderate level of demand. While the exact number of days on market (DOM) is not available, a moderate rental rate and the ability to command rents closer to the FMR suggest that there is sufficient demand to support Section 8 investments. The lack of DOM data makes it difficult to assess how quickly properties are being rented, but the overall rental percentage and the potential to charge closer to FMR rates imply a steady demand.
Decision Tree Outcome:
Note: The outcome hinges on the accuracy of the debt service calculation and the availability of more detailed local rental market data.
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.