Location: Stephens County, OK | Metro: Cotton County, 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 | $760 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,490 |
| 5 Bedrooms | $1,728 |
| 6 Bedrooms | $1,935 |
| 7 Bedrooms | $2,090 |
| 8 Bedrooms | $2,195 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $760 | $47,977 | 1.58% | A+ |
| 2BR | $930 | $57,683 | 1.61% | A+ |
| 3BR | $1,290 | $164,569 | 0.78% | D |
| 4BR | $1,490 | $288,134 | 0.52% | F |
U.S. Census Bureau data (2024)
The Section 8 program analysis for ZIP code 73533, located in Duncan, OK, reveals a significant gap between the Fair Market Rent (FMR) and the market rent. The FMR for the area in fiscal year 2024 is set at $890, while the actual market rent, measured by the Zillow Observed Rent Index (ZORI), stands at $975. This creates a difference of $85, or approximately 9.5%, where landlords can rent properties above the FMR but must accept lower rates if they wish to participate in the Section 8 program.
The implications of this gap are clear. When the FMR is less than the market rent, as it is here, landlords who choose to house voucher tenants are effectively subsidizing the difference. In Duncan, OK, with a median home value of $134,969 and a median income of $59,906, the financial burden of renting below market rates can be substantial. For instance, a landlord might expect to earn $975 per month from a property but would only receive $890 if the tenant has a Section 8 voucher. Over a year, this discrepancy amounts to a loss of $1,020 per unit, which could impact the overall profitability of an investment portfolio.
In this context, it's important to note that 28.8% of residents in Duncan are renters. This statistic underscores the potential demand for rental properties and the importance of understanding the local rental market dynamics. Landlords must weigh the benefits of stable, government-backed rental income against the financial shortfall caused by renting below market rates.
To summarize, the analysis for ZIP 73533 shows that landlords participating in the Section 8 program will rent their units at a rate that is $85 lower than the market average. This represents a 9.5% discount off the expected market rent. While this may not be ideal for maximizing immediate cash flow, it can still be a strategic move for those looking to secure long-term, reliable tenants through the voucher system. However, the financial impact should not be overlooked, especially when considering the broader economic profile of Duncan, OK.
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.