Location: Washington County, OK | Metro: Nowata 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 | $740 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,420 |
| 5 Bedrooms | $1,647 |
| 6 Bedrooms | $1,845 |
| 7 Bedrooms | $1,993 |
| 8 Bedrooms | $2,093 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $960 | $126,542 | 0.76% | D |
| 3BR | $1,310 | $194,042 | 0.68% | D |
| 4BR | $1,420 | $302,004 | 0.47% | F |
| 5BR | $1,647 | $403,527 | 0.41% | F |
U.S. Census Bureau data (2024)
Investors looking into the ZIP code 74006 in Bartlesville, OK, might have several reservations regarding the feasibility of investing in rental properties through the Section 8 program. Here, we address those concerns with available data.
Objection 1: Will the Fair Market Rent (FMR) of $980 cover the mortgage on a $216,049 home?
The FMR of $980 for the metro area in fiscal year 2026 is indeed a critical factor when considering the profitability of a Section 8 investment. To determine if this amount can cover the mortgage, let's consider an average interest rate for a fixed-rate mortgage. Assuming a 30-year fixed-rate mortgage at a current average rate of 4.5%, the monthly payment on a $216,049 home would be approximately $1,083. This means that the FMR falls short by about $103 per month. However, it's important to note that this calculation does not account for potential tax benefits, property appreciation, or other income streams such as co-signing or renting out additional units. These factors can offset the shortfall and improve the overall financial picture.
Objection 2: Is there enough renter demand at 24.2%?
A 24.2% rental rate in ZIP 74006 suggests that there is a moderate level of demand for rental housing. While this percentage may seem low compared to some urban areas, it's crucial to understand the local context. Bartlesville, being a suburban town, typically has a lower rental demand due to higher homeownership rates. Nonetheless, the presence of a significant rental population indicates a steady need for affordable housing options. The key here is to focus on properties that meet the criteria for Section 8 tenants and are located in areas with higher rental activity, such as near employment centers or public transportation.
Objection 3: Will vouchers keep pace with $1,371 market rents?
The FMR of $980 is notably lower than the market rent of $1,371. This discrepancy raises questions about whether voucher holders will be able to afford market-rate rentals. According to the data, the voucher payment standard is set to cover the FMR, which means that landlords may need to offer competitive pricing to attract tenants. While the gap between FMR and market rent is significant, it's worth noting that many landlords find ways to make Section 8 properties profitable by reducing costs elsewhere or by leveraging other financial tools and incentives. Additionally, the federal government periodically adjusts the FMR to reflect changes in the housing market, although these adjustments may not always match the local market conditions perfectly.
In conclusion, while the data presents some challenges for investors in ZIP 74006, particularly around covering mortgage payments and keeping up with market rents, there are strategies and considerations that can help mitigate these risks. The demand for rental housing, though not high, is stable, and careful property selection can lead to successful investments. Always consult with local real estate experts and review updated data before making any investment decisions.
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.