Location: Payne County, OK | Metro: Pawnee County, OK HUD Metro FMR Area
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 | $720 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $940 | $164,211 | 0.57% | F |
| 3BR | $1,300 | $277,112 | 0.47% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 74032, located in Glencoe, OK, provides a clear view of potential investment returns. To derive the gross yield, we must compare the annualized rental income against the median home value.
First, consider the Fair Market Rent (FMR) for a two-bedroom apartment, which is set at $890 per month for FY 2024. This equates to an annual income of $10,680. Dividing this figure by the median home value of $244,258 yields an implied gross yield of approximately 4.4%. The formula used here is: Gross Yield = (Annual Income / Property Value) * 100.
Next, examine the market rent data, which stands at $868 per month according to the Census ACS. This translates into an annual income of $10,416. When this amount is divided by the median home value, the implied gross yield drops slightly to about 4.3%. Using the same formula: Gross Yield = (Annual Income / Property Value) * 100.
The difference between these two yields is marginal, with the FMR scenario offering a 4.4% gross yield versus the market rent scenario's 4.3%. Given that the renter density in Glencoe, OK, is 15.9%, it suggests that a significant portion of the population does not rely solely on rental housing, which could impact the stability of rental income sources. However, the FMR represents a guaranteed payment level from the government, making it a more stable income source compared to market rent, which can fluctuate based on local economic conditions.
The N/A-day DOM (Days on Market) indicates incomplete data regarding how quickly properties are rented out. This could be due to a variety of factors, including low vacancy rates or rapid turnover. For a landlord or small-portfolio investor, the FMR scenario might be preferable because it ensures a steady stream of income, though the difference in gross yield between the two scenarios is minimal. Both scenarios provide a solid foundation for investment, with the FMR offering slightly higher predictability.
In summary, the gross yield for a Section 8 property in ZIP 74032 is around 4.4% when using FMR and 4.3% based on market rent. The slight edge in yield and stability provided by the FMR makes it a more attractive option for investors looking for predictable returns.
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.