Location: Tillman County, 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 | $770 |
| 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 |
|---|---|---|---|---|
| 3BR | $1,260 | $174,688 | 0.72% | D |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 73528 provides valuable insights into potential investment opportunities. Based on the Fair Market Rent (FMR) for a 2-bedroom apartment set at $900 annually for FY 2024, the implied gross yield can be calculated. With a median home value of $143,442, the annualized FMR of $900 translates to a gross yield of approximately 0.63%. This calculation is straightforward: $900 divided by $143,442 equals roughly 0.63%.
However, when considering the market rent of $792 (as per Census ACS), the gross yield drops to about 0.55%. This figure is derived by dividing the annual market rent of $792 by the median home value of $143,442. The disparity between the two yields highlights the importance of understanding local rental dynamics.
Given the renter density of 25.3%, it's evident that the market is not heavily saturated with renters, which could influence the demand for Section 8 properties. However, the lack of data on Days on Market (DOM) makes it challenging to assess how quickly these properties might be leased. Despite this, the higher gross yield associated with the FMR scenario suggests a potentially better financial return for landlords willing to participate in the Section 8 program.
To conclude, the gross yield based on the FMR ($900) is approximately 0.63%, while the yield based on the market rent ($792) is around 0.55%. While the FMR scenario offers a slightly higher gross yield, the actual performance will depend on the landlord's ability to attract and retain tenants under the Section 8 program. The lower gross yield from market rents reflects the reality of current rental rates in the area, making it a more conservative estimate for investors.
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.