Location: Cherokee County, OK | Metro: Cherokee County, OK
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 | $880 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,460 |
| 5 Bedrooms | $1,694 |
| 6 Bedrooms | $1,897 |
| 7 Bedrooms | $2,049 |
| 8 Bedrooms | $2,151 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,110 | $163,611 | 0.68% | D |
| 3BR | $1,400 | $246,646 | 0.57% | F |
| 4BR | $1,460 | $415,794 | 0.35% | F |
U.S. Census Bureau data (2024)
The ZIP code 74451, located in Pettit, OK, presents a moderate investment opportunity when classified on the axes of yield and stability.
Starting with yield, the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,090, which is higher than the local market rate of $885. This indicates that there is potential for higher rental income compared to the immediate Pettit market, suggesting a somewhat attractive yield for investors who can position their properties competitively. However, the median home value of $223,570 is relatively high, which could limit the number of affordable units available for low-income renters who might benefit most from Section 8 subsidies.
Moving to stability, the ZIP code shows a modest 17.9% of residents as renters, indicating a smaller pool of potential tenants relative to owner-occupied homes. The average household income of $59,873 suggests a middle-class community where many residents could afford market-rate rents without needing assistance, but it also implies that some lower-income households may qualify for Section 8 vouchers. Unfortunately, the lack of data on days on market (DOM) makes it difficult to assess the turnover rate and stability of rental properties specifically.
Based on these figures, Pettit, OK does not fit neatly into a high-yield/low-stability flip-style market or a steady-cashflow zone. Instead, it represents an intermediate scenario. The higher FMR compared to the local market rate suggests opportunities for above-average returns if investors can attract voucher holders. However, the limited percentage of renters and the absence of DOM data indicate a less stable environment for frequent property flips. For small-portfolio investors looking for a balance between yield and stability, Pettit offers a moderate risk-reward profile.
To conclude, the key figures driving this assessment are the $1,090 FMR versus the $885 local market rate, the $223,570 median home value, and the 17.9% renter population. These numbers suggest a market where steady cash flow is achievable, albeit with a slightly higher risk due to the limited size of the rental market and the unknown dynamics of property turnover.
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.