Location: Washita County, OK | Metro: Beckham County, OK
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,200 |
| 4 Bedrooms | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate scenario for ZIP code 73627 reveals some critical insights for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a two-bedroom apartment in the metropolitan area for fiscal year 2026 is set at an annualized rate of $1,040 per month. Meanwhile, the market rent based on Census ACS data stands at an annualized rate of $861 per month.
Given that the median home value is not available, we must focus on rental yields. For the FMR scenario, the implied gross yield would be approximately 12.48%, assuming a property value of $100,000 (this figure is derived from the annual rent income of $12,480 divided by the property value). In contrast, using the market rent figure, the gross yield drops to about 10.33% ($10,332 annual rent income divided by the same property value).
The lower renter density of 16.8% suggests that the majority of residents in ZIP 73627 are homeowners, which could affect the demand for rental properties, including those participating in the Section 8 program. However, the absence of data on days on market (DOM) makes it challenging to gauge the speed at which properties are leased out, especially under the Section 8 program. This lack of information on DOM implies that there might be a slower leasing process, which could impact cash flow and vacancy rates.
In conclusion, while the Section 8 program offers a higher gross yield at 12.48% compared to the market rent yield of 10.33%, the actual performance will depend on several factors, including tenant turnover and the overall demand for subsidized housing. Given the low renter density, the market rent scenario may be more reflective of the real-world leasing challenges in ZIP 73627. Investors should consider these figures alongside other local economic indicators to make informed 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.