Location: Jackson County, OK | Metro: Greer County, OK
| Unit Size | Monthly FMR |
|---|---|
| Studio | $700 |
| 1 Bedroom | $710 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,270 |
| 4 Bedrooms | $1,420 |
| 5 Bedrooms | $1,647 |
| 6 Bedrooms | $1,845 |
| 7 Bedrooms | $1,993 |
| 8 Bedrooms | $2,093 |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP code 73554 (Mangum, OK) for a Section 8 investment, follow these steps:
Step 1: Does the Fair Market Rent (FMR) of $950 cover the debt service on a property valued at $60,976?
Yes: The FMR of $950 is sufficient to cover the debt service on a property priced at $60,976. This means that the rental income from a Section 8 tenant will be enough to meet monthly mortgage payments and other associated costs.
No: The FMR of $950 does not cover the debt service on a property valued at $60,976. This indicates that the rental income from a Section 8 tenant would fall short of meeting the monthly financial obligations of owning such a property. Therefore, purchasing in this area for a Section 8 investment is not advisable.
Step 2: How does the market rent of $665 compare to the FMR?
Above: If the market rent were above the FMR of $950, it would suggest that there is potential for higher returns from non-Section 8 tenants, but since the actual market rent is $665, this scenario does not apply.
At: If the market rent equaled the FMR, it would indicate a balanced market where Section 8 rents match what tenants could pay privately. However, with the market rent at $665, this scenario also does not apply.
Below: The market rent of $665 is below the FMR of $950. This means that the property can potentially be rented at a higher rate to Section 8 tenants compared to the local market, providing an advantage over non-subsidized rentals.
Step 3: Is there sufficient demand with 19.6% of residents being renters and the number of days on the market (DOM) being N/A?
Enough Demand: With 19.6% of residents being renters, there is a reasonable base of potential tenants. However, the lack of data on days on the market (DOM) makes it difficult to assess how quickly properties are typically leased in Mangum. Despite this, the percentage of renters suggests that there is demand for rental housing.
It Depends: Given that the days on the market data is unavailable, the viability of the investment hinges on other factors such as the stability of the rental market and the likelihood of finding and retaining Section 8 tenants. If the market rent is significantly lower than the FMR, as is the case here, the potential for higher rental income can offset some of the risks associated with uncertain demand.
In conclusion, the ZIP code 73554 presents a viable opportunity for Section 8 investments, contingent upon the ability to secure a property at or below the value of $60,976, and assuming that the FMR covers the debt service. The market rent being below the FMR provides a competitive edge, but the lack of DOM data introduces uncertainty regarding the speed of leasing properties. A thorough local market analysis and understanding of the Section 8 program in the area are recommended before making any purchase decisions.
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.