Location: Stephens County, OK | Metro: Jefferson 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 | $720 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,180 |
| 4 Bedrooms | $1,570 |
| 5 Bedrooms | $1,821 |
| 6 Bedrooms | $2,040 |
| 7 Bedrooms | $2,203 |
| 8 Bedrooms | $2,313 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $940 | $65,683 | 1.43% | A |
| 3BR | $1,180 | $115,559 | 1.02% | B |
| 4BR | $1,570 | $199,623 | 0.79% | D |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 73573 in Oklahoma reveals a challenging investment scenario. To understand the potential returns, we must first calculate the implied gross yield based on the annualized Fair Market Rent (FMR) and market rent figures.
Using the annualized 2BR FMR of $960, the total annual rental income would be $11,520 ($960 x 12 months). Given the median home value of $103,273, this translates into an implied gross yield of approximately 11.15%. The calculation is straightforward: divide the annual rental income by the property's value.
However, when using the market rent figure of $681, the total annual rental income drops to $8,172 ($681 x 12 months). This results in a significantly lower implied gross yield of about 7.92%, calculated similarly by dividing the annual rental income by the median home value.
The reality of the situation suggests that the lower gross yield scenario is more likely. The 36.9% renter density indicates a moderate demand for rental properties, but it does not necessarily mean that all renters will qualify for or prefer Section 8 housing. Additionally, the N/A-day Days on Market (DOM) implies either a very quick sale or an incomplete dataset, making it difficult to assess the typical time frame for selling properties in this area.
In conclusion, while the higher FMR-based gross yield of 11.15% is attractive, the more realistic market rent-based gross yield of 7.92% should be considered for prudent investment planning. Landlords and small-portfolio investors should factor in these yields along with other local economic conditions and the specifics of the Section 8 program to make informed decisions.
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.