Location: Washington 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 | $840 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,670 |
| 5 Bedrooms | $1,937 |
| 6 Bedrooms | $2,169 |
| 7 Bedrooms | $2,343 |
| 8 Bedrooms | $2,460 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,090 | $163,637 | 0.67% | D |
| 3BR | $1,440 | $261,972 | 0.55% | F |
| 4BR | $1,670 | $403,855 | 0.41% | F |
| 5BR | $1,937 | $511,323 | 0.38% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering the ZIP code 74070, which encompasses Skiatook, Oklahoma, might raise several concerns regarding the feasibility of investing in properties here. Let's address these objections with the available data.
Objection 1: Will FMR $1060 (zip FY 2024) cover the mortgage on a $275,479 home?
The Fair Market Rent (FMR) for ZIP 74070 in fiscal year 2024 is set at $1060. To determine if this amount can cover the mortgage on a $275,479 home, we must consider the typical interest rates and loan terms. Assuming a fixed-rate mortgage at an average interest rate of 4.5% over 30 years, the monthly payment on such a home would be approximately $1415. At first glance, the FMR does not fully cover the mortgage payment. However, it's important to note that this calculation assumes no down payment and includes only principal and interest. In reality, investors often make a down payment and factor in property taxes and insurance, which can reduce the effective monthly cost.
Objection 2: Is there enough renter demand at 22.7%?
Renter demand in ZIP 74070 is indicated by the rental rate of 22.7%, meaning that just over one-fifth of the housing units are rented. This figure may seem low, but it's crucial to understand the local context. The rental rate reflects the percentage of occupied units that are rented, not the overall demand. A lower rental rate can still indicate strong demand if the vacancy rate is low. Unfortunately, the data does not provide the vacancy rate, so we cannot definitively assess the level of demand based solely on the rental rate.
Objection 3: Will vouchers keep pace with $957 market rents?
The Housing Choice Voucher program, commonly known as Section 8, aims to subsidize rent for eligible low-income families. The voucher amount is adjusted annually based on the local market conditions. In ZIP 74070, the market rent is $957, which is slightly below the FMR of $1060. While the voucher amounts are designed to keep pace with market rents, they are not guaranteed to cover the full amount. The actual voucher payment could be less than $957, depending on the tenant's income and other factors. This means that landlords might need to accept a lower rent than the market rate to participate in the program.
In summary, while the FMR of $1060 may not fully cover the mortgage on a $275,479 home without additional considerations, the rental rate of 22.7% suggests a niche market that could still be profitable. The challenge with vouchers is that they might not keep up with the full market rent of $957, requiring landlords to balance participation in the program with their financial goals.
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.