Location: Blaine County, OK | Metro: Blaine 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 | $760 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,190 |
| 4 Bedrooms | $1,310 |
| 5 Bedrooms | $1,520 |
| 6 Bedrooms | $1,702 |
| 7 Bedrooms | $1,838 |
| 8 Bedrooms | $1,930 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,000 | $52,797 | 1.89% | A+ |
| 3BR | $1,190 | $128,701 | 0.92% | C |
| 4BR | $1,310 | $187,831 | 0.7% | D |
U.S. Census Bureau data (2024)
In evaluating ZIP code 73772, located in Watonga, Oklahoma, several key concerns arise regarding the feasibility of investing in Section 8 properties. Let's delve into these objections and address them with the available data.
Objection 1: Will Fair Market Rent (FMR) of $970 (metro FY 2026) cover the mortgage on a $104,387 home?
The median home value in Watonga is $104,387. To determine if the FMR can cover the mortgage, we need to consider typical financing terms. Assuming a 30-year fixed-rate mortgage at a current average rate of around 6%, the monthly payment on a $104,387 loan would be approximately $620. This figure includes principal and interest but excludes property taxes and insurance, which would add to the total cost. Given that the FMR is $970, it is clear that the rent can indeed cover the mortgage payment comfortably, leaving room for additional expenses such as maintenance and utilities.
Objection 2: Is there enough renter demand at 27.2%?
Renter occupancy stands at 27.2%. While this percentage might seem low compared to national averages, it indicates that there is still a significant portion of the population renting rather than owning their homes. This suggests that there is a base level of demand for rental properties in Watonga. However, the data does not provide specifics on the number of renters or the vacancy rate, which would give a clearer picture of the competition and potential for filling units. Nonetheless, the existing demand supports the viability of rental investments, including those under Section 8.
Objection 3: Will vouchers keep pace with $798 market rents?
The average market rent in Watonga is $798. The critical question here is whether Section 8 vouchers will cover this amount. Historically, voucher amounts have lagged behind market rents, often requiring landlords to subsidize the difference. In Watonga, the data does not specify the exact amount of Section 8 vouchers. However, given the lower overall market rents compared to the FMR, it is reasonable to assume that vouchers could come closer to covering the actual rent charged. Landlords should be prepared for some variance, but the gap between vouchers and market rents appears manageable in this area.
To summarize, while the data provides insights into the financial aspects of investing in Watonga through Section 8 properties, it also highlights areas where further investigation might be necessary. The FMR is sufficient to cover the mortgage on an average-priced home, and the renter occupancy rate suggests a steady demand. The alignment of voucher amounts with market rents remains uncertain but is likely favorable due to the lower rent levels in the area.
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.