Location: Major County, OK | Metro: Major 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 | $700 |
| 1 Bedroom | $700 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $920 | $61,705 | 1.49% | A |
| 3BR | $1,240 | $150,470 | 0.82% | C |
| 4BR | $1,530 | $231,164 | 0.66% | D |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 73737 in Fairview, OK, reveals two distinct scenarios based on the Federal Market Rent (FMR) and the market rent figures. Using the annualized 2BR FMR of $940 for fiscal year 2026, the implied gross yield for a property in this area is approximately 7.28%. This calculation is derived by dividing the annual FMR ($940 * 12 = $11,280) by the median home value of $129,087.
In contrast, using the market rent figure of $666 per month from the Census ACS, the implied gross yield drops significantly to about 5.24%. This lower yield is calculated by multiplying the monthly market rent ($666 * 12 = $7,992) and then dividing by the median home value of $129,087.
The disparity between these two yields highlights the impact of government-subsidized rental rates versus the actual market conditions. Given that only 21.9% of residents in ZIP 73737 are renters, it's important to consider the broader context of the local housing market. The low renter density suggests that there might be limited demand for rental properties, including those participating in the Section 8 program.
The N/A-day DOM (Days on Market) indicates incomplete data, which could mean either very quick sales or extended periods where homes aren't listed. However, this does not provide enough information to adjust our cap-rate calculations directly. Instead, we should focus on the realistic scenario presented by the market conditions.
While the FMR-based gross yield of 7.28% appears more attractive, the market rent-based gross yield of 5.24% is likely more reflective of the true rental income potential. This lower yield aligns with the reality of the local rental market and the relatively low proportion of renters. Landlords and small-portfolio investors should therefore anticipate a gross yield closer to 5.24%, unless they have reason to believe that the demand for Section 8 properties specifically exceeds general market trends.
To summarize, the gross yield based on the 2BR FMR is 7.28%, while the gross yield based on market rent is 5.24%. The latter is more realistic given the local market dynamics.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.