Location: Beaver County, OK | Metro: Beaver County, OK
| Unit Size | Monthly FMR |
|---|---|
| Studio | $880 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,560 |
| 4 Bedrooms | $1,860 |
| 5 Bedrooms | $2,158 |
| 6 Bedrooms | $2,417 |
| 7 Bedrooms | $2,610 |
| 8 Bedrooms | $2,741 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 73931 reveals some key insights for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a 2-bedroom apartment in this area, annualized, stands at $1,100 for fiscal year 2026, based on metro data. Meanwhile, the market rent, as per Census ACS, is pegged at $875 annually.
To derive the gross yield, we need to consider the rental income relative to the property value. However, the median home value for ZIP 73931 is not available, which complicates a direct calculation of the gross yield. Despite this, we can still analyze the implications of the two different rent scenarios.
In the case of the Section 8 FMR, the annual rental income would be $13,200 for a 2-bedroom unit. If we hypothetically assume a median home value, the gross yield would be higher compared to the market rent scenario, where the annual income would be $10,500. This difference highlights the potential financial benefits of participating in the Section 8 program over relying solely on market rents.
Given the 16.4% renter density in ZIP 73931, it's clear that the majority of homeowners are likely not renting out their properties, suggesting a relatively stable demand for rental units among those who do rent. However, the lack of data on the Days on Market (DOM) makes it difficult to assess how quickly properties are leased, particularly under the Section 8 program.
The higher FMR set by the government aims to ensure affordability while also covering the costs of maintaining quality housing. For landlords, this means a potentially higher gross yield if they can secure Section 8 tenants. The market rent, on the other hand, reflects the actual rental rates landlords might receive without the Section 8 subsidy, which could result in lower gross yields.
While the exact gross yield cannot be calculated due to the missing median home value, the comparison between the FMR and market rent indicates that Section 8 participation could offer a more attractive return on investment, especially considering the stability that comes with government-backed rental agreements. Landlords should weigh these factors carefully when deciding whether to participate in the Section 8 program.
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.