Location: Woods County, OK | Metro: Major 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 | $700 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,170 |
| 4 Bedrooms | $1,230 |
| 5 Bedrooms | $1,427 |
| 6 Bedrooms | $1,598 |
| 7 Bedrooms | $1,726 |
| 8 Bedrooms | $1,812 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $920 | $47,371 | 1.94% | A+ |
| 3BR | $1,170 | $95,860 | 1.22% | A |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 73860, located in Woods County, Oklahoma, can be quite different from the broader market dynamics. For landlords and small-portfolio investors, understanding these nuances is crucial to managing rental properties effectively.
The Section 8 program uses the SAFMR (Small Area Fair Market Rent) for two-bedroom units in ZIP 73860, which is set at $990 per month for fiscal year 2026. This SAFMR represents the maximum amount that the Housing Choice Voucher Program will pay toward a tenant's rent. However, it's important to note that the local market rent for a similar unit, according to Census ACS data, is lower at $752 per month.
A voucher holder pays a portion of their income towards rent. Typically, this is 30% of their adjusted monthly income. If we assume an average adjusted income of $1,000 per month, the tenant would pay $300 towards rent. The remaining balance, up to the $990 SAFMR limit, is covered by the government. Therefore, if the tenant's portion is $300, the government would pay the difference between the $300 and the $990, but not exceeding the actual market rent of $752.
In addition to the base rent, the government also provides utility allowances. These allowances vary based on the number of bedrooms and the location. For ZIP 73860, the utility allowance for a two-bedroom unit is typically around $200 per month. This amount is separate from the SAFMR and is intended to help cover the cost of utilities such as electricity, gas, and water.
To illustrate, let's break down the reimbursement for a two-bedroom unit. If the market rent is $752 and the tenant pays $300, the government would pay $452 to meet the total rent. With the utility allowance of $200, the total government payment would be $652. This leaves a surplus of $100 above the local market rent of $752, making the Section 8 program financially beneficial for landlords in this area.
The typical reimbursement gap or surplus for a two-bedroom unit in ZIP 73860 is a surplus of $100 per month. This means landlords receive slightly more than the local market rate when renting to voucher holders, providing a stable and predictable income stream.
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.