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 | $1,410 |
| 1 Bedroom | $1,530 |
| 2 Bedrooms | $1,860 |
| 3 Bedrooms | $2,520 |
| 4 Bedrooms | $2,830 |
| 5 Bedrooms | $3,283 |
| 6 Bedrooms | $3,677 |
| 7 Bedrooms | $3,971 |
| 8 Bedrooms | $4,170 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,860 | $243,598 | 0.76% | D |
| 3BR | $2,520 | $295,832 | 0.85% | C |
| 4BR | $2,830 | $401,504 | 0.7% | D |
| 5BR | $3,283 | $567,105 | 0.58% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 73078, Piedmont, OK, reveals interesting insights into the potential returns for landlords and small-portfolio investors. To begin, we must consider the Fair Market Rent (FMR) and the Zillow Observed Rent Index (ZORI) for a two-bedroom apartment. The annualized FMR for a 2BR unit in FY 2024 is $1420, while the market rent according to ZORI is $1,628.
Using these figures, we can calculate the implied gross yield for both scenarios. For the FMR scenario, the annual rental income is $1420 multiplied by 12 months, totaling $17,040. Dividing this amount by the median home value of $337,090 gives us an implied gross yield of approximately 5.06%. In contrast, the market rent scenario yields an annual income of $1,628 times 12, equaling $19,536. When divided by the median home value, this results in a gross yield of about 5.79%.
Given that the renter density in ZIP 73078 is 7.9%, it's important to note that the number of units occupied by renters is relatively low compared to owner-occupied homes. This factor suggests that the market rent scenario might be less reliable since there are fewer potential tenants to fill units at market rates. Additionally, the days on market (DOM) statistic of 62 days indicates a moderate level of difficulty in leasing units, further supporting the idea that market rents may not be consistently achievable.
In light of these considerations, the FMR scenario appears more realistic for landlords participating in the Section 8 program. While the implied gross yield of 5.06% is lower than the market rent yield of 5.79%, it provides a more stable and predictable income stream due to government subsidies. This stability is crucial for long-term investment planning and risk management, especially when dealing with a low-density rental market.
To summarize, for ZIP 73078, the Section 8 program offers a more reliable gross yield of 5.06%, based on the FMR of $1420 for a 2BR unit, whereas the market rent scenario presents a higher but less certain gross yield of 5.79%. Investors should weigh the benefits of guaranteed rental income against the potential for higher market-driven rents, considering the local rental market conditions and the likelihood of securing tenants at market rates.
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.