Location: Carter County, OK | Metro: Carter 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 | $700 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $950 |
| 3 Bedrooms | $1,200 |
| 4 Bedrooms | $1,400 |
| 5 Bedrooms | $1,624 |
| 6 Bedrooms | $1,819 |
| 7 Bedrooms | $1,965 |
| 8 Bedrooms | $2,063 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $950 | $54,188 | 1.75% | A+ |
| 3BR | $1,200 | $110,558 | 1.09% | B |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 73438, Healdton, OK, provides valuable insights into potential investment returns. To begin, let's consider the Fair Market Rent (FMR) for a two-bedroom unit, which is set at $940 annually for fiscal year 2026. Using this figure, we can calculate the implied gross yield. Given the median home value of $88,873, the annualized rent of $940 translates to a gross yield of approximately 1.06%. This calculation is straightforward: divide the annual rent by the median home value.
Next, let's examine the market rent scenario. The Census ACS reports an average market rent of $894 per month for the area, which annualizes to $10,728. When this amount is compared to the median home value, it yields a gross return of roughly 12.05%. This higher gross yield suggests that properties rented at market rates could generate significantly more income relative to their value than those rented under the Section 8 program.
To determine which scenario is more realistic, we must consider the local rental market dynamics. With a renter density of 20.3%, the demand for rental properties, particularly those covered under Section 8, is relatively low. However, the N/A-day DOM (Days on Market) indicates incomplete data, possibly due to limited sales activity in the area. Despite this, the lower gross yield of 1.06% associated with Section 8 rents is likely more reflective of the actual investment environment in Healdton. Landlords participating in the Section 8 program should expect a lower return on investment compared to renting at market rates, where the gross yield is over ten times higher at 12.05%.
The decision to participate in Section 8 versus renting at market rates depends on various factors, including the landlord's risk tolerance, property management preferences, and the overall economic landscape of Healdton. While market rents offer a substantially higher gross yield, the stability and government backing of Section 8 rents might be preferable for some investors. It is important to note that these figures represent the gross yield and do not account for operating expenses, vacancy rates, or other costs that would impact the net operating income (NOI).
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.