Location: Caddo 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 | $830 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,490 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,120 | $114,397 | 0.98% | C |
| 3BR | $1,490 | $217,662 | 0.68% | D |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 73059 (Minco, OK) reveals some interesting dynamics when comparing the Federal Market Rent (FMR) to the market rent. To begin, let's annualize the figures for a 2-bedroom property.
The annualized FMR for a 2BR property in ZIP 73059 is $11,040 ($920 x 12 months), while the annualized market rent based on Census ACS data is $5,976 ($498 x 12 months).
Given the median home value in the area is $198,537, we can calculate the implied gross yield for both scenarios. The gross yield from the FMR would be approximately 5.56%, calculated by dividing $11,040 by $198,537. On the other hand, the gross yield from the market rent would be about 3.00%, calculated by dividing $5,976 by $198,537.
The higher gross yield from the FMR scenario appears more attractive at first glance, but it's important to consider the context. With a renter density of only 28.4%, it suggests that the majority of residents in Minco, OK, are homeowners rather than renters. This low rental population density makes it less likely that a significant portion of the rental market would qualify for Section 8 subsidies. Therefore, the FMR gross yield of 5.56% is less realistic compared to the market rent gross yield of 3.00%.
The data on days on market (DOM) is not available, which could have provided additional insight into how quickly rental properties are filled. However, the disparity between the two gross yields is substantial enough to warrant caution. Investors should focus on the more conservative estimate of 3.00% gross yield, as it reflects the actual rental market conditions better than the FMR-based figure.
In conclusion, while the potential for higher returns through Section 8 subsidies exists, the reality of the rental market in ZIP 73059 indicates that the lower gross yield based on market rents is more likely to be achieved. Landlords and small-portfolio investors should plan their investments accordingly, ensuring they account for the actual demand and supply dynamics in the 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.