Section 8 Fair Market Rent (FMR) for ZIP 73716 - 2027

Location: Woods County, OK | Metro: Alfalfa County, OK

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$790
1 Bedroom	$830
2 Bedrooms	$1,040
3 Bedrooms	$1,380
4 Bedrooms	$1,600
5 Bedrooms	$1,856
6 Bedrooms	$2,079
7 Bedrooms	$2,245
8 Bedrooms	$2,357

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

454

Median Household Income

$78,309

Housing Units

316

Renter Percentage

11.3%

Occupancy Rate

78.2%

Renter Occupied

The Section 8 cap rate analysis for ZIP code 73716 provides a detailed look at potential rental income versus property values. Using the annualized Fair Market Rent (FMR) for a 2-bedroom apartment at $1,050 per month, the total annual rent comes to $12,600. The median home value in this area is $178,805. This implies a gross yield of approximately 7.05% when using the FMR.

On the other hand, if we consider the market rent of $439 per month for a 2-bedroom unit, the annual rent amounts to $5,268. Applying this figure to the median home value, the gross yield drops significantly to about 2.94%. These yields are calculated based on the assumption that the entire property value can generate rental income at these rates.

Given the 11.3% renter density in ZIP 73716, it's important to note that a majority of residents might be homeowners rather than renters. However, the Fair Market Rent scenario appears more plausible for several reasons:

Higher Rental Income: The FMR reflects the higher rent that Section 8 vouchers cover, making it a more attractive option for landlords.
Market Conditions: While the market rent is lower, it doesn't account for the guaranteed income that Section 8 provides, which can offset risks associated with vacancy and delinquency.
Voucher Coverage: Section 8 vouchers aim to cover the fair market rent, ensuring landlords receive a more stable and higher monthly income compared to typical market conditions.

The gross yield of 7.05% derived from the FMR is notably higher than the 2.94% from the market rent. This suggests that properties in ZIP 73716 could offer a better return on investment when participating in the Section 8 program, assuming the landlord can secure tenants with vouchers. Despite the low renter density, the stability and higher income provided by Section 8 make it a more realistic and favorable option for small-portfolio investors looking to maximize their returns.

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.