Location: Ellis County, OK | Metro: Beaver 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 | $710 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $930 | $40,508 | 2.3% | A+ |
| 3BR | $1,240 | $127,847 | 0.97% | C |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 73843 (Gage, OK) provides a clear view of potential investment returns. Using the annualized Fair Market Rent (FMR) for a two-bedroom apartment at $970 per month, the annual rental income would be $11,640. Against the median home value of $90,273, this translates into an implied gross yield of approximately 12.9%. This calculation assumes that the property can command the FMR set by HUD for fiscal year 2026.
However, using the Census ACS data, which reports a market rent of $803 per month for a two-bedroom apartment, the annual rental income drops to $9,636. This yields an implied gross yield of about 10.7% when compared to the median home value. The difference between these two gross yields is significant, with the FMR scenario offering a higher return.
The gross yield derived from the FMR scenario is likely overestimated due to the low renter density in Gage, OK. With only 17.9% of residents being renters, it's challenging to find tenants willing to pay the higher FMR rate. Additionally, the lack of data on days-on-market (DOM) suggests either limited rental activity or insufficient data to draw conclusions about the speed at which properties are rented out. In such a context, relying on the more conservative market rent figure from the Census ACS is advisable for realistic investment projections.
In summary, while the HUD FMR-based gross yield stands at 12.9%, the more practical market rent-based gross yield is 10.7%. Given the low renter population density and the absence of DOM data, the latter is a safer estimate for potential Section 8 investments in ZIP 73843.
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.