Location: Enid, OK | Metro: Enid, OK MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $990 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,300 |
| 5 Bedrooms | $1,508 |
| 6 Bedrooms | $1,689 |
| 7 Bedrooms | $1,824 |
| 8 Bedrooms | $1,915 |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 73736 might have several concerns regarding the feasibility of renting properties under the Section 8 program. Let's address these objections directly using available data.
Objection 1: Will FMR $920 (zip FY 2024) cover the mortgage on a $233,580 home?
The Fair Market Rent (FMR) for ZIP 73736 is set at $920 for fiscal year 2024. To determine if this amount can cover a mortgage, we must consider the typical interest rates and loan terms. Assuming a 30-year fixed-rate mortgage at an average rate of 5%, the monthly payment on a $233,580 home would be approximately $1,250. This means that the $920 FMR would not fully cover the mortgage payment, leaving a shortfall of $330 per month. Landlords would need to factor in this difference when deciding whether to participate in the Section 8 program.
Objection 2: Is there enough renter demand at 5.5%?
The vacancy rate in ZIP 73736 stands at 5.5%. This figure suggests a moderate level of competition among landlords. However, it also indicates that there is sufficient demand to fill units at this rate. The key consideration here is the balance between the number of units available and the number of qualified Section 8 tenants seeking housing. While the data does not provide a direct measure of tenant demand, a 5.5% vacancy rate implies that the majority of rental properties are occupied, which is generally positive for rental stability.
Objection 3: Will vouchers keep pace with $1,094 market rents?
The average market rent in ZIP 73736 is $1,094. The FMR of $920 is below this market rate, suggesting that landlords who rely solely on Section 8 vouchers may face challenges in covering the full cost of market-level rentals. The voucher system is designed to help low-income families afford housing but does not guarantee that it will always match the market rent. Landlords should prepare for potential gaps between the voucher amount and the actual rent they could charge in the open market.
In conclusion, while ZIP 73736 presents opportunities for landlords and small-portfolio investors, the data highlights some financial considerations. The FMR is lower than the typical mortgage payment, indicating a need for additional income sources or adjustments in pricing expectations. The vacancy rate suggests a stable rental market, though it does not fully account for the specific demand for Section 8 properties. Lastly, the discrepancy between market rents and FMR values means that landlords must carefully manage their expectations regarding rental income coverage.
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.