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 | $64,604 | 1.69% | A+ |
U.S. Census Bureau data (2024)
The ZIP code 73568 in Cotton County, Oklahoma, serves as a cash-flow anchor within a Section 8 portfolio strategy. The Federal Market Rent (FMR) for this area is set at $890 for fiscal year 2024, while the market rent stands at $717. This creates a positive spread of $173 per unit, ensuring that landlords receive a higher rental income than the local market average when participating in the Section 8 program.
The median home value in ZIP 73568 is $51,740, which indicates a relatively low-cost area where property acquisition can be affordable for investors. With a median income of $29,737, the area has a significant portion of its population relying on government assistance for housing, making it an ideal location for Section 8 properties.
A cash-flow anchor is essential for any diversified real estate investment portfolio, providing consistent and reliable income streams. In ZIP 73568, the guaranteed higher rental income from the Section 8 program directly supports this role. Landlords benefit from the stability of government-backed payments, which can help offset potential risks associated with other investments in their portfolio.
The renter share in this area is 19.9%, indicating a moderate level of demand for rental properties. While this might suggest some diversification benefits, the primary advantage remains the cash flow generated from the positive spread between FMR and market rent. This ensures that even if the property appreciation is limited (with no specific percentage given for price-cut share or days on market), the investor still receives above-market returns through the Section 8 program.
In conclusion, ZIP 73568 is best positioned as a cash-flow anchor in a Section 8 portfolio strategy due to the substantial spread between the FMR and the market rent, along with the affordability of property acquisition and the stability of tenant payments. This strategy allows investors to secure predictable income, which is crucial for managing overall financial risk and maintaining a steady cash flow.
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.