Location: Lawton, OK | Metro: Lawton, 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 | $710 |
| 1 Bedroom | $720 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $920 | $104,327 | 0.88% | C |
| 3BR | $1,260 | $207,234 | 0.61% | D |
| 4BR | $1,520 | $340,207 | 0.45% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 73527 in Cache, Oklahoma, reveals some interesting insights into the potential returns for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a 2-bedroom apartment in fiscal year 2024 is set at $890 annually, while the market rent based on Census ACS data stands at $865.
To calculate the gross yield, we need to consider the median home value in the area, which is $215,575. For the FMR scenario, the annualized rental income of $890 translates to an implied gross yield of approximately 0.41%. This is calculated by taking the annual rental income ($890) and dividing it by the median home value ($215,575).
For the market rent scenario, using the annualized figure of $865, the implied gross yield drops slightly to about 0.40%. This calculation follows the same method: dividing the annual rental income ($865) by the median home value ($215,575).
The difference between these two yields is minimal, reflecting a close alignment between the FMR and the actual market conditions. However, the FMR scenario provides a slightly higher yield, indicating that landlords participating in the Section 8 program might receive a marginally better return on investment compared to those renting at market rates.
Given the low renter density of 16.6%, it's important to note that the demand for rentals in ZIP 73527 is relatively limited. This suggests that landlords should carefully consider the likelihood of maintaining a steady occupancy rate, especially if they rely on market rents rather than the more stable source of income provided by Section 8.
The N/A-day DOM (days on market) indicates that there isn't sufficient data to provide an accurate measure of how long properties typically remain vacant before being rented. This lack of information makes it challenging to predict vacancy rates, but the low renter density implies that competition among renters could be fierce.
In conclusion, the gross yields derived from both the FMR and market rent scenarios are quite low, suggesting that real estate investments in ZIP 73527 may not offer substantial returns based solely on rental income. Landlords and investors should factor in these yields when making investment decisions, considering the trade-offs between participation in the Section 8 program and reliance on market rents.
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.