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 | $770 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,220 |
| 4 Bedrooms | $1,270 |
| 5 Bedrooms | $1,473 |
| 6 Bedrooms | $1,650 |
| 7 Bedrooms | $1,782 |
| 8 Bedrooms | $1,871 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $770 | $96,651 | 0.8% | D |
| 2BR | $970 | $133,874 | 0.72% | D |
| 3BR | $1,220 | $208,329 | 0.59% | F |
| 4BR | $1,270 | $290,183 | 0.44% | F |
| 5BR | $1,473 | $385,748 | 0.38% | F |
U.S. Census Bureau data (2024)
The median income in ZIP code 74464, which includes Tahlequah, OK, stands at $51,262. Given the market rate for rent, known as the Zillow Observed Rent Index (ZORI), at $1,103, it becomes evident that a significant portion of the population may struggle to afford housing without financial assistance. The ZORI represents the average rental price in the area, which is higher than the Fair Market Rent (FMR) set for the metro area for fiscal year 2026, which is $970.
This means that the typical renter in ZIP 74464 faces an affordability gap when considering market-rate rentals versus those subsidized by housing vouchers. For a household earning the median income, paying $1,103 in rent would consume a substantial part of their monthly budget, leaving less for other necessities. In contrast, renting a home at the FMR would be more manageable, reducing the financial strain on families.
Tahlequah has a population of 31,116, with 45.1% of residents being renters. This high percentage of renters indicates a robust demand for rental properties. However, the affordability gap suggests that many renters may lean towards using housing vouchers to find affordable accommodation, rather than paying market rates out-of-pocket. As a result, landlords who accept vouchers could see increased competition from other landlords looking to attract these tenants.
The takeaway for landlords and small-portfolio investors is that accepting Section 8 vouchers can provide a steady stream of reliable tenants, albeit at a lower rental rate compared to the market. While the voucher payment standard of $970 is below the ZORI of $1,103, it still offers a predictable income source that can be attractive given the local economic conditions. Landlords should consider the balance between accepting vouchers and maintaining a portfolio of cash-paying tenants, depending on their investment goals and risk tolerance.
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.