Location: Harper 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 | $730 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $950 |
| 3 Bedrooms | $1,160 |
| 4 Bedrooms | $1,390 |
| 5 Bedrooms | $1,612 |
| 6 Bedrooms | $1,805 |
| 7 Bedrooms | $1,949 |
| 8 Bedrooms | $2,046 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $950 | $65,855 | 1.44% | A |
| 3BR | $1,160 | $150,067 | 0.77% | D |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 73848 in Laverne, Oklahoma, is centered around the discrepancy between the Fair Market Rent (FMR) set at $960 and the actual market rent of $873 as reported by the Census ACS for fiscal year 2026. This creates a gap of $87, or approximately 9%, which is significant for both landlords and small-portfolio investors.
Given that the FMR exceeds the market rent, this scenario positions voucher tenants as a key yield play. Landlords can effectively leverage this situation by renting properties to voucher holders at the higher FMR rate, thus increasing their rental income above what the open market would offer. For instance, a landlord renting an apartment at the market rate of $873 can instead receive $960 from a voucher tenant, resulting in a direct increase in cash flow.
In the context of Laverne, where only 18.8% of residents are renters, and the median home value stands at $108,957 with a median income of $57,619, the potential benefits of participating in the Section 8 program become even more pronounced. The relatively low percentage of renters suggests a smaller pool of potential tenants, making it advantageous to attract those who qualify for housing vouchers.
However, it's crucial to understand the implications of this gap. While receiving the higher FMR rate can boost yields, landlords must also be aware of the potential costs associated with housing voucher tenants. These include administrative burdens, compliance with HUD regulations, and possibly lower vacancy rates due to the limited number of voucher holders in the area. Additionally, the long-term stability and reliability of these payments should be considered, as they are tied to government funding and policy changes.
To summarize, the $87 gap between FMR and market rent in ZIP 73848 represents a 9% yield opportunity for landlords willing to accommodate Section 8 tenants. This makes the program particularly attractive in Laverne, given the limited rental market and the financial benefits of higher guaranteed rents. Yet, the decision to participate should weigh these advantages against the operational challenges and regulatory requirements inherent to the Section 8 program.
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.