Location: Dewey County, OK | Metro: Dewey County, OK
| Unit Size | Monthly FMR |
|---|---|
| Studio | $700 |
| 1 Bedroom | $700 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,270 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 73835 provides insight into potential investment opportunities for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a two-bedroom apartment in the area is set at $940 per month for fiscal year 2026, based on metropolitan standards. Meanwhile, the Census ACS reports a market rent of $681 for the same type of unit.
To derive the gross yield, we must first consider the median home value. Unfortunately, the data for ZIP 73835 does not provide a median home value, making it challenging to calculate a precise cap rate. However, we can still analyze the gross yields based on the rental income figures provided.
If we annualize the FMR of $940, the yearly income for a two-bedroom unit would be $11,280. Given the lack of a median home value, we cannot directly compute a cap rate. However, using the FMR implies a higher gross yield compared to the market rent scenario.
In contrast, if we use the market rent figure of $681, the annualized income for a two-bedroom unit would be $8,172. Again, without a median home value, we cannot calculate a cap rate, but this suggests a lower gross yield than the FMR scenario.
Given that the renter density in ZIP 73835 is 29.6%, it indicates a relatively low proportion of residents renting their homes. This could imply that the market rent might be more reflective of the actual rental environment, as it accounts for the local demand and supply dynamics. Additionally, the N/A-day Days on Market (DOM) figure suggests that either there is insufficient data or the rental market moves quickly, which could affect how landlords price their properties relative to the FMR.
In conclusion, while the exact cap rates cannot be calculated due to missing median home value data, the gross yields derived from the FMR and market rent figures show a clear disparity. The FMR-based gross yield of $11,280 annually is higher than the market rent-based gross yield of $8,172 annually. For most practical purposes, especially considering the local renter density and the rapid turnover implied by the DOM figure, the market rent scenario is likely more realistic for investment considerations.
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.