Location: Ottawa County, OK | Metro: Ottawa County, OK
| Unit Size | Monthly FMR |
|---|---|
| Studio | $930 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,550 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 74358 presents a mixed picture due to limited data points. The Fair Market Rent (FMR) for a two-bedroom apartment is set at $1,180 annually, based on the metro area estimate for fiscal year 2026. However, the market rent for the same type of unit stands at $850, according to the Census ACS data.
To derive the cap-rate, we need to compare these rental figures against the median home value. Unfortunately, the median home value for ZIP 74358 is not available, which complicates a direct cap-rate calculation. Nevertheless, we can infer some insights regarding the gross yield.
If we were to assume that the median home value could be used to calculate the gross yield, the annualized FMR of $1,180 would imply a higher gross yield compared to the market rent of $850. This is because a higher rental income relative to property value suggests a better return on investment.
Given the 19.3% renter density in ZIP 74358, it's important to note that a significant portion of residents might be seeking rental assistance through programs like Section 8. This makes the FMR scenario more relevant for landlords and small-portfolio investors looking to secure long-term tenants with stable income streams.
The lack of days-on-market (DOM) data also hinders a precise analysis. However, with the higher FMR, properties in ZIP 74358 could potentially attract more Section 8 tenants, thereby reducing the risk of vacancies. In contrast, relying solely on market rent might expose investors to greater market fluctuations and tenant turnover.
In conclusion, while the exact cap-rate cannot be determined due to missing data on median home values and DOM, the gross yield comparison clearly favors the use of FMR for two-bedroom units. This aligns well with the high percentage of renters who might benefit from government-assisted housing programs.
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.