Location: Pushmataha County, OK | Metro: Pushmataha County, OK
| Unit Size | Monthly FMR |
|---|---|
| Studio | $820 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,630 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 74521 centers around the significant disparity between the Fair Market Rent (FMR) set at $1,180 for the fiscal year 2026 and the actual market rent of $725, as reported by the Census Bureau's American Community Survey. This discrepancy represents a gap of $455, which translates to approximately 62.5% of the market rent being lower than the FMR.
Given that the FMR exceeds the market rent, landlords and small-portfolio investors can leverage this situation to enhance their investment yields. Voucher tenants, who are guaranteed a rental subsidy up to the FMR, provide a stable and predictable income stream. Landlords can accept these vouchers without the risk of losing money due to the lower market rents. In fact, accepting a Section 8 tenant at the FMR rate ensures a higher monthly cash flow compared to renting to non-voucher tenants at the current market rate of $725.
The ZIP code 74521 has a rental market where only 16.7% of residents are renters, indicating a smaller pool of potential tenants. However, the median household income of $35,000 suggests that many residents may struggle to afford market-rate rents, making them prime candidates for Section 8 vouchers. The lack of data on the median home value indicates a possible focus on the rental market over homeownership in this area, further emphasizing the importance of understanding the dynamics of the Section 8 program.
In conclusion, the gap between the FMR and the market rent in ZIP 74521 presents an opportunity for landlords to increase their yields by participating in the Section 8 program. Accepting vouchers allows property owners to charge closer to the FMR, thereby securing a more substantial monthly rental income than what the current market offers. This strategy is particularly beneficial in an area where a significant portion of the population may be eligible for such assistance due to the relatively low median income.
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.