Location: Tillman County, OK | Metro: Tillman County, OK
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 | $850 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,320 |
| 5 Bedrooms | $1,531 |
| 6 Bedrooms | $1,715 |
| 7 Bedrooms | $1,852 |
| 8 Bedrooms | $1,945 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $930 | $32,803 | 2.84% | A+ |
| 3BR | $1,290 | $79,791 | 1.62% | A+ |
| 4BR | $1,320 | $132,512 | 1% | C |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 73542, located in Frederick, OK, within the Tillman County metro area, reveals a favorable environment for rental properties. The HUD Fair Market Rent (FMR) for the metro scope in fiscal year 2026 is set at $950. In contrast, the market rent as per Census ACS data stands at $762. This indicates that voucher tenants can cashflow at FMR levels, providing landlords and small-portfolio investors with a significant buffer between the government-subsidized rent and the actual market rate.
To further analyze the investment potential, consider the median home value in the area, which is $54,178. The rent-to-price ratio derived from these figures is approximately 14%, calculated by dividing the annual market rent ($762 x 12 months) by the median home value. This low ratio suggests that the rental market is relatively strong compared to the housing market, making it an attractive option for investors seeking steady income.
The median days on market (DOM) is listed as N/A, indicating either insufficient data or a very active market where homes sell quickly. Additionally, the price-cut share is reported at 0.1%, which is exceptionally low. These factors imply that the buy-versus-rent dynamics favor renting, especially given the low likelihood of needing to reduce asking prices to attract buyers.
In summary, the combination of a robust FMR above market rent and a low rent-to-price ratio makes ZIP code 73542 an excellent target for Section 8 investors looking to capitalize on cashflow opportunities. The strong rental market and stable housing prices provide a solid foundation for long-term investment success.
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.