Location: Enid, OK | Metro: Enid, OK MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $730 |
| 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)
The Section 8 cap-rate analysis for ZIP code 73753 reveals a nuanced picture for potential investors. Using the Federal Market Rent (FMR) data for a 2-bedroom apartment at $1000 per month, the annualized income would be $12,000. This figure is derived from the FMR for FY 2024. When compared to the median home value of $184,485, the implied gross yield stands at approximately 6.51%. This calculation is straightforward: divide the annual income by the property value.
However, the market rent data from the Census ACS provides a different perspective. With a market rent of $950 per month for a 2-bedroom unit, the annualized income drops to $11,400. The gross yield in this scenario is slightly lower at around 6.18%. These yields are based solely on the rental income without considering operating expenses, which investors should account for when determining the Net Operating Income (NOI).
To determine which scenario is more realistic, consider the renter density and days on market (DOM). ZIP 73753 has a renter density of 6.8%, indicating a relatively low demand for rental properties. The N/A-day DOM suggests that there might not be sufficient data to assess how quickly properties are rented out, possibly due to low turnover rates. Given these factors, the market rent scenario of $950 per month appears more realistic for investors in this area. The lower renter density could mean less competition among landlords, leading to a situation where market rents might not reach the higher FMR levels.
In conclusion, while the FMR-based gross yield of 6.51% offers an optimistic view, the market rent-based gross yield of 6.18% is likely a more accurate reflection of potential returns in ZIP 73753. Investors should use these figures as a starting point for their own detailed financial analysis, including the impact of operating costs and vacancy rates on their overall investment strategy.
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.