Section 8 Fair Market Rent (FMR) for ZIP 73505 - 2027

Investment Score for ZIP 73505

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$770
1 Bedroom	$780
2 Bedrooms	$990
3 Bedrooms	$1,360
4 Bedrooms	$1,630
5 Bedrooms	$1,891
6 Bedrooms	$2,118
7 Bedrooms	$2,287
8 Bedrooms	$2,401

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$990	$70,683	1.4%	A
3BR	$1,360	$147,463	0.92%	C
4BR	$1,630	$254,914	0.64%	D
5BR	$1,891	$393,339	0.48%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 73505 (Lawton, OK) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 73505, as of 2026, is set at $1,020 for a two-bedroom unit. This figure represents 21.0% of the median household income in Lawton, which stands at $58,272. However, the actual median rent for a two-bedroom unit on Zillow is significantly lower at $63,708, translating to a price-to-FMR ratio of 5.2x. This suggests that the actual rental market is much more affordable compared to the FMR set by HUD. For voucher holders, this means they can potentially find units that are well below the FMR, but they must still adhere to the voucher limits. The constraint for voucher holders is that landlords cannot charge more than the FMR, which could limit their ability to secure higher-quality properties in the area. #### Affordability & Renter Profile ZIP code 73505 has a high percentage of renters at 48.2%, indicating a significant demand for rental housing. With an occupancy rate of 86.6%, the market appears to be relatively tight, suggesting that there is little excess supply of rental units. Given the median household income of $58,272, the majority of renters are likely to be middle-class families or individuals who rely on the local economy for employment. The fact that the FMR for a two-bedroom unit is only 21.0% of the median income indicates that renting is generally affordable for most residents. However, the disparity between the FMR and actual rental prices might create challenges for low-income households, especially those relying on Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 73505 presents a mixed picture. The FMR for a two-bedroom unit is $1,020, which is considerably higher than the actual median rent of $63,708. This implies that investors can potentially achieve positive cash flow if they manage to keep their rental rates below the FMR while maintaining competitive returns. The price-to-FMR ratio of 5.2x suggests that the investment grade is moderate; while there is potential for profitability, it also highlights the risk of overpaying for properties relative to the rental income they can generate. #### Specific Actionable Insights 1. **Target Properties Below FMR**: Investors should focus on acquiring properties where the rent is below the FMR. For example, a two-bedroom unit priced at $63,708 would be well below the FMR of $1,020, allowing for positive cash flow. Additionally, this would make the property more attractive to Section 8 voucher holders, who have strict limits on how much they can pay. 2. **Consider One-Bedroom Units**: The FMR for a one-bedroom unit is $800, which is slightly above the median rent for a two-bedroom unit. Investors might consider purchasing one-bedroom units, as they can command slightly higher rents without exceeding the FMR. This could provide a better balance between affordability and profitability. 3. **Monitor Local Economic Indicators**: Given the high percentage of renters and the tight occupancy rate, monitoring local economic indicators such as job growth and population trends will be crucial. If the local economy improves, leading to higher incomes and more demand for rental housing, the actual rental prices might rise closer to the FMR, improving investment prospects. #### Bottom Line For Section 8-focused investors, the ZIP code 73505 presents a moderately favorable environment. While the FMR is higher than the actual median rent, the tight market and high renter population suggest strong demand. The key is to target properties that can be rented out below the FMR to ensure positive cash flow. Based on the data, the recommendation is to **hold** on to existing investments and **buy** selectively, focusing on properties that offer good value and are likely to attract Section 8 tenants. However, investors should remain cautious about overpaying for properties given the current price-to-FMR ratio.

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.