Location: Payne County, OK | Metro: Payne County, OK
| Unit Size | Monthly FMR |
|---|---|
| Studio | $870 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,520 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 74077, located in Stillwater, OK, is anchored by the discrepancy between the Fair Market Rent (FMR) of $1,120 and the lack of available market rent data. This gap is significant because it highlights the potential financial dynamics at play when considering rental investments.
In the absence of market rent data, the FMR serves as a benchmark for rental properties that might attract Section 8 voucher holders. Given the FMR of $1,120, landlords should be aware that this figure is set by HUD and reflects the 40th percentile of typical rental costs in the area. Without market rent data, we cannot calculate the exact percentage gap, but the absence of market rent suggests that the FMR could be higher than the actual market rate.
If the FMR exceeds the market rent, this makes ZIP 74077 a yield play. Voucher tenants would effectively subsidize the rent, allowing landlords to charge a rate closer to the FMR while still attracting tenants who might otherwise struggle to afford housing in the area. This scenario benefits landlords by providing a steady income stream that aligns with HUD's guidelines.
However, if the FMR is lower than the market rent, which is currently undetermined, landlords might face a different challenge. They would need to accept a lower rent from voucher tenants, potentially reducing their profit margins compared to open-market rates. This situation could be seen as a cost of housing voucher tenants, as landlords must adjust their expectations to accommodate the subsidized rates.
The ZIP code's demographic context provides further insight. With a total population of 1,286, and an average household income not specified, landlords must consider the broader economic landscape. The median home value and median income figures are not available, making it challenging to gauge the overall affordability of the area.
To summarize, the gap between the FMR and the market rent in ZIP 74077 is critical for understanding the financial implications of renting to voucher holders. Landlords should evaluate this gap carefully, considering whether it presents a yield opportunity or a cost to their investment strategy.
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.