Location: Nowata County, OK | Metro: Nowata County, OK
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $710 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,150 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
U.S. Census Bureau data (2024)
The ZIP code 74042 presents several challenges for potential Section 8 landlords. First, tenant turnover is a significant concern due to the difference between the market rent of $600 and the Federal Market Rent (FMR) of $940 for fiscal year 2026, which is based on the metropolitan area. This discrepancy can lead to higher vacancy rates as tenants may struggle to afford the higher rent set by the government program.
Vacancy exposure is another critical issue. The data shows that the average days on market (DOM) is not available, which suggests a lack of transparency regarding how long properties typically remain vacant. This uncertainty can be detrimental for landlords who need predictable cash flows to maintain their investments.
Deferred maintenance is also a risk factor. With a median income of $48,750 and an unspecified typical home value, there's a possibility that homeowners may delay necessary repairs and renovations, potentially affecting the quality and safety of the rental units. This can lead to higher maintenance costs and possible legal issues if the homes do not meet minimum housing standards.
However, these risks must be weighed against the high concentration of renters in the area. With a 32.8% renter share, there is likely to be a robust demand for rental properties, including those that accept Section 8 vouchers. This high demand can help mitigate some of the risks associated with tenant turnover and vacancy rates.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 74042 is moderate. While there are notable challenges, the high renter population provides a solid foundation for demand, balancing out the risks.
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.