Location: Cotton 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 | $700 |
| 1 Bedroom | $700 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,090 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,090 | $161,813 | 0.67% | D |
U.S. Census Bureau data (2024)
The median income in ZIP code 73562 stands at $66,500, which places significant constraints on the ability of households to afford the market rate rent of $850. This market rate represents nearly 20% of the median annual income, making it challenging for many residents to cover their housing expenses without financial strain.
To put this into perspective, the Fair Market Rent (FMR) set by HUD for the area in fiscal year 2024 is $890. This figure is slightly higher than the market rate but still imposes a substantial burden on local renters. The difference between the market rate and the FMR highlights an affordability gap that could influence rental decisions and preferences among the 14.4% of the 535 population who are renters.
This affordability gap has implications for landlord competition. Given the financial pressures on renters, there might be a preference for properties that accept Section 8 vouchers, which can help subsidize the cost of living. Landlords who choose to accept vouchers could see increased demand, as they offer a solution to the affordability issue faced by many residents.
However, landlords must also consider the strategy of accepting cash-paying tenants. While the market rate of $850 is higher than the median income suggests is comfortable, cash payments provide a more direct and potentially quicker flow of revenue compared to the administrative processes involved with vouchers. The decision should weigh the benefits of steady cash flow against the potential for higher occupancy rates by accepting vouchers.
The takeaway for landlords is clear: the affordability gap in ZIP 73562 means that accepting Section 8 vouchers can attract a larger pool of tenants. Yet, the choice between voucher and cash-pay strategies depends on individual business goals and risk tolerance. Landlords looking to maximize immediate income might favor cash-paying tenants, while those aiming for consistent occupancy and broader appeal should consider the advantages of participating in the Section 8 program.
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.