Location: Enid, OK | Metro: Enid, OK MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,330 |
| 5 Bedrooms | $1,543 |
| 6 Bedrooms | $1,728 |
| 7 Bedrooms | $1,866 |
| 8 Bedrooms | $1,959 |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP 73730 might raise several valid concerns regarding the feasibility of investing in rental properties there. Here's a straightforward analysis based on the available data.
Objection 1: Will Fair Market Rent (FMR) of $930 cover the mortgage on a home priced at $90,465?
The FMR of $930 per month must be compared against the estimated monthly mortgage payment for a home priced at $90,465. Assuming a standard 30-year fixed-rate mortgage at an interest rate of 4%, the principal and interest payment would be approximately $430. This figure does not include property taxes, insurance, or maintenance costs, which can significantly increase the total monthly cost. However, the FMR comfortably exceeds the mortgage payment, indicating that the rent should cover the mortgage and leave room for other expenses.
Objection 2: Is there enough renter demand at 10.3%?
The 10.3% rental vacancy rate suggests that there is a moderate amount of competition among rental properties in ZIP 73730. While a lower vacancy rate might indicate higher demand, it is important to note that a 10.3% rate is still considered healthy and not excessively high. According to the data, there is sufficient demand to fill most rental units, although landlords may need to be competitive with their pricing and property offerings to attract tenants.
Objection 3: Will vouchers keep pace with $950 market rents?
The Fair Market Rent set by HUD is $930 for ZIP 73730, which is slightly below the market rent of $950. Vouchers typically cover up to the FMR, so landlords accepting vouchers might find themselves shortchanged by $20 per month. This discrepancy could be a concern if the voucher program is the primary source of income for a property. However, it is also worth noting that the market rent is only $20 above the FMR, suggesting that the impact of this difference is relatively minor.
In conclusion, while there are valid points to consider, the data indicates that ZIP 73730 offers a reasonable investment opportunity for landlords and small-portfolio investors. The FMR covers the mortgage, the vacancy rate suggests a healthy demand, and the slight disparity between FMR and market rent is manageable. Investors should, however, carefully evaluate individual property costs and tenant demographics before making investment 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.