Location: Grant County, OK | Metro: Grant County, OK
| Unit Size | Monthly FMR |
|---|---|
| Studio | $700 |
| 1 Bedroom | $700 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,270 |
| 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 analysis of the Section 8 cap-rate scenario for ZIP code 73771 reveals a stark contrast between government-subsidized rental income and market-driven rental income. The Fair Market Rent (FMR) for a two-bedroom apartment in this area, as set by the government for FY 2026, is $940 per month. When annualized, this equates to $11,280 in annual rental income. Given the median home value of $63,603 in ZIP 73771, the implied gross yield from the FMR scenario would be approximately 17.7%. This calculation is derived by dividing the annual rental income by the median home value: $11,280 / $63,603 = 0.177, or 17.7%.
In contrast, the market rent for a two-bedroom apartment in ZIP 73771, based on Census ACS data, is $675 per month. Annualizing this figure yields an annual rental income of $8,100. Using the same median home value of $63,603, the implied gross yield from the market rent scenario would be around 12.7%, calculated as $8,100 / $63,603 = 0.127, or 12.7%.
The lower renter density of 22.7% suggests that the majority of housing units in ZIP 73771 are owner-occupied rather than rented. This factor makes the market rent scenario more realistic for most investors, as it reflects the actual rental market conditions. However, the N/A-day Days on Market (DOM) indicates incomplete data, which could mean that rental turnover rates or vacancy periods are not fully accounted for in the analysis. Despite this, the market rent yield provides a more grounded perspective for potential returns, considering the typical rental environment.
Investors should recognize that while the Section 8 program can offer stable, guaranteed rental income, the market rent yield offers a direct reflection of current demand and willingness to pay in the local rental market. For those looking to participate in the Section 8 program, the higher gross yield of 17.7% is attractive, but it comes with the constraints of the program. For others seeking to maximize returns through market-driven rents, the 12.7% gross yield is a more practical starting point for their calculations.
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.