Location: Lawton, OK | Metro: Lawton, OK HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,270 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
U.S. Census Bureau data (2024)
The classification of ZIP code 73540 hinges on the analysis of its yield and stability metrics. The Federal Market Rent (FMR) for the area is set at $1020 for fiscal year 2024, which contrasts sharply with the local market rent of $525. This significant disparity indicates a high-yield potential for rental properties in this ZIP code, suggesting that landlords can expect to earn above-average returns on their investments.
However, the stability of the market is another critical factor. With only 13.2% of residents being renters, the demand for rental properties is relatively low, which could translate into longer vacancy periods and higher turnover rates. Additionally, the median household income in the area stands at $86,458, which is a positive indicator for stability, as it suggests that tenants have a reasonable financial cushion to cover rent payments. However, the lack of data on days on market (DOM) for homes indicates an incomplete picture of the market's liquidity and how quickly properties can be rented out once they become available.
Given these figures, ZIP 73540 does not fully fit into the high-yield/low-stability flip-style market category due to the absence of high turnover rates, which would typically be a key characteristic. Instead, it leans towards being a steady-cashflow zone, driven by the above-market rental yields. Yet, the relatively low percentage of renters and the missing DOM data introduce elements of uncertainty and risk, placing this ZIP code in a somewhat intermediate position between high-yield and steady-cashflow zones.
To summarize, while there is a strong potential for high yields due to the substantial gap between FMR and market rents, the limited rental market size and unknown DOM figures temper this with concerns about stability. Therefore, for landlords and small-portfolio investors, ZIP 73540 presents a scenario where above-average returns are possible, but careful tenant selection and possibly lower occupancy rates must be managed to maintain steady cash flows.
Data Sources: FMR data from HUD (2027). 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.