Location: Woods County, OK | Metro: Alfalfa 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 | $730 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $950 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,420 |
| 5 Bedrooms | $1,647 |
| 6 Bedrooms | $1,845 |
| 7 Bedrooms | $1,993 |
| 8 Bedrooms | $2,093 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $950 | $66,686 | 1.42% | A |
| 3BR | $1,210 | $143,105 | 0.85% | C |
| 4BR | $1,420 | $204,721 | 0.69% | D |
U.S. Census Bureau data (2024)
A decision tree for evaluating whether to purchase properties in ZIP code 73717 for Section 8 investments hinges on three critical factors: Fair Market Rent (FMR), market rent, and rental demand.
1) Does FMR of $970 cover debt service on a $115,865 property?
Yes: The FMR of $970 is sufficient to cover the debt service on a property valued at $115,865. Assuming a typical mortgage rate of around 5%, the annual debt service would be approximately $6,000, or $500 per month. This means that the FMR comfortably exceeds the monthly debt service requirement.
No: If the debt service is higher than what can be covered by the FMR of $970, then the investment will not be profitable under Section 8 guidelines. However, based on the given property value and common mortgage rates, FMR does indeed cover the debt service.
It Depends: In cases where the mortgage rate or terms significantly deviate from standard values, it could affect whether the FMR covers the debt service. For example, if the mortgage rate is above 5%, the debt service would increase, potentially making it harder to break even with the FMR.
2) Is market rent of $852 above, at, or below FMR?
Above: If the market rent were above the FMR, it would indicate a strong local rental market, but since the market rent is $852, which is below the FMR of $970, this suggests that the local market is somewhat depressed compared to the federal guidelines.
At: Not applicable here as the market rent is lower than the FMR.
Below: The market rent of $852 is below the FMR of $970, meaning that landlords participating in the Section 8 program can charge up to $970, which is higher than the current market rent. This can be an advantage in attracting tenants who might otherwise find the market rent too high.
3) Are 41.6% renters plus N/A-day days on the market enough demand?
Yes: With 41.6% of the population being renters, there is a significant base of potential tenants. Additionally, the lack of specific data on days on the market (DOM) suggests either a stable or rapidly turning rental market, which can be beneficial for maintaining occupancy rates.
No: If the rental percentage were much lower, or if the DOM were excessively long, indicating difficulty in renting out units, then the demand would be insufficient. However, 41.6% is a reasonable percentage, and the absence of DOM data implies a steady demand.
It Depends: The percentage of renters alone does not fully determine demand; other factors such as vacancy rates and competition must also be considered. Since the DOM data is not available, it's crucial to research further into these aspects to ensure a robust tenant pool.
In summary, ZIP 73717 appears to be a viable option for Section 8 investments, provided that the debt service is manageable and the local rental market is stable. The FMR exceeding the market rent offers a pricing advantage, while the substantial rental population ensures a decent demand for housing.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.