Location: Kingfisher County, OK | Metro: Enid, OK MSA
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 | $690 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $990 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,410 |
| 5 Bedrooms | $1,636 |
| 6 Bedrooms | $1,832 |
| 7 Bedrooms | $1,979 |
| 8 Bedrooms | $2,078 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $990 | $121,155 | 0.82% | C |
| 3BR | $1,210 | $199,485 | 0.61% | D |
U.S. Census Bureau data (2024)
The real estate market in Hennessey, Oklahoma (ZIP 73742) presents a unique setup for both landlords and small-portfolio investors. With a median home value of $186,722, the area reflects an affordable housing environment that can be attractive to a broad range of buyers. However, the lack of percentage of listings being reduced and the median days on market (DOM) data suggests a stable market with little indication of significant price adjustments in the near future.
The Federal Market Rent (FMR) for ZIP 73742 in fiscal year 2024 is set at $990. This is notably higher than the current market average rental rate of $847, based on the latest Census American Community Survey (ACS) data. This discrepancy signals potential upward pressure on rental rates, aligning with the government's benchmark. Landlords and investors should consider gradually adjusting their rental prices to approach the FMR level, which could lead to increased cash flow without significantly impacting occupancy rates.
For long-term hold investors, the setup in Hennessey points towards a moderate appreciation thesis. The stable home values combined with the potential for rental rate increases suggest that properties will likely retain their value and offer steady growth opportunities. While rapid appreciation is not implied by the data, the combination of affordability and rising rents indicates a sustainable market that can provide consistent returns over time.
Investors should also note the balance between home values and rental rates. At $186,722, homes are relatively inexpensive compared to the national average, making it easier for tenants to transition into homeownership. This could influence the local rental market, potentially leading to periods where demand for rentals decreases as more individuals find it feasible to purchase homes.
To summarize, the current market conditions in Hennessey imply a stable environment with room for gradual price increases on both the home value and rental sides. Investors should focus on maintaining competitive rental rates while keeping an eye on the broader economic trends that could affect the local housing market.
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.