Location: Mayes County, OK | Metro: Tulsa, 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 | $860 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,470 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,120 | $196,363 | 0.57% | F |
| 3BR | $1,470 | $267,712 | 0.55% | F |
| 4BR | $1,700 | $385,589 | 0.44% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP 74036, Inola, Oklahoma, might have several concerns regarding the viability of investing in rental properties through the Section 8 program. Here's a detailed analysis addressing these concerns.
Objection 1: Will FMR $1020 (zip FY 2024) cover the mortgage on a $260,889 home?
The Fair Market Rent (FMR) for ZIP 74036 in fiscal year 2024 is set at $1020 per month. To determine if this amount can cover the mortgage on a $260,889 home, we need to consider the typical interest rates and loan terms. Assuming a 30-year fixed-rate mortgage with an average interest rate of 4%, the monthly payment on a $260,889 home would be approximately $1270. This means that the FMR of $1020 falls short by around $250 per month. However, it's important to note that property values and interest rates fluctuate, so it's advisable to use a mortgage calculator to assess the specific financial situation based on current market conditions.
Objection 2: Is there enough renter demand at 15.2%?
The percentage of renters in ZIP 74036 is 15.2%. While this figure is relatively low compared to urban areas, it does indicate a presence of rental demand. However, the data does not provide a comprehensive picture of the rental market dynamics. To better understand the demand, it would be necessary to look at the number of rental units available and the vacancy rate. Additionally, the local economy, job market, and population growth trends would offer further insights into the sustainability of rental demand. For instance, if there is a growing workforce or an influx of new residents, the demand for rentals could increase.
Objection 3: Will vouchers keep pace with $999 market rents?
The market rent for ZIP 74036 is $999 per month, slightly below the FMR. The concern here is whether Section 8 vouchers will adjust to match the rising costs of housing. According to HUD guidelines, voucher amounts are periodically adjusted to reflect changes in the housing market. However, the data does not specify the exact adjustment schedule or the amount of the next adjustment. It's crucial to monitor local HUD announcements and market trends to ensure that voucher payments remain competitive with market rents. If the voucher amount lags behind the market rent, it could affect the ability to attract tenants or maintain profitability.
In conclusion, while the data provides some clarity on the financial aspects of investing in ZIP 74036 through the Section 8 program, it also highlights areas where further research is needed to make an informed decision. The FMR does not fully cover the mortgage on a $260,889 home, indicating that additional income sources or cost-saving measures may be necessary. The low percentage of renters suggests a limited market, but without more detailed data, it's difficult to assess the full scope of rental demand. Lastly, the alignment of voucher payments with market rents requires ongoing attention to ensure long-term investment success.
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.