Location: Johnston County, OK | Metro: Atoka 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 | $700 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,180 |
| 4 Bedrooms | $1,420 |
| 5 Bedrooms | $1,647 |
| 6 Bedrooms | $1,845 |
| 7 Bedrooms | $1,993 |
| 8 Bedrooms | $2,093 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $920 | $106,149 | 0.87% | C |
| 3BR | $1,180 | $225,811 | 0.52% | F |
| 4BR | $1,420 | $350,558 | 0.41% | F |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 74525, which encompasses Atoka, Oklahoma, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2026, the FMR is set at $940, while the Census ACS data indicates that the market rent is $715. This means there is a gap of $225, or approximately 31%, between what landlords can charge through the Section 8 program and the current market rates.
In this scenario where the FMR exceeds the market rent, it becomes evident that voucher tenants represent a yield play for landlords. By participating in the Section 8 program, landlords can potentially increase their rental income above the typical market rate, thus enhancing their investment returns. The higher FMR allows landlords to receive payments closer to $940 per month, even if the open-market rate is only $715. This additional income can be particularly beneficial given the local economic conditions.
The median home value in Atoka, OK is $194,936, and the median income stands at $52,685. With 30.4% of residents being renters, the demand for affordable housing is notable. However, landlords must also consider the administrative aspects and potential delays in receiving payments that come with housing voucher tenants. Despite these challenges, the financial advantage of renting to voucher holders at the higher FMR rate can outweigh the costs, making it a strategic choice for maximizing yield in the Atoka rental market.
To summarize, the gap between the FMR and market rent in Atoka, OK, creates an opportunity for landlords to increase their rental income through the Section 8 program. Given the specific context of Atoka, the benefits of this increased income can be substantial, especially when compared to the lower market rents and considering the local median income and home values.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.