Location: Pittsburg County, OK | Metro: Pittsburg County, OK
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 74528 reveals some key insights into the potential investment opportunities available to landlords and small-portfolio investors. The Federal Market Rent (FMR) for a 2-bedroom unit in this area, based on fiscal year 2026 data, is set at $940 per month, which annualizes to $11,280. However, the median home value and the corresponding market rent are currently not available, leading to a less complete picture.
In the scenario where we use the FMR, the implied gross yield can be calculated assuming a typical home value for the area. Without specific market rent data, it's challenging to provide an exact comparison. But let's consider that the median home value in similar areas might range around $200,000. Using this assumption, the annualized FMR of $11,280 would imply a gross yield of approximately 5.64%. This calculation is derived by dividing the annual rent ($11,280) by the assumed median home value ($200,000).
The 8.7% renter density in ZIP 74528 suggests that a significant portion of the population is not likely to be renting through Section 8 alone. Therefore, relying solely on the FMR might not be the most realistic approach for all units in the portfolio. However, the lack of data on market rent and days on market (DOM) makes it difficult to provide a more accurate assessment of the gross yield in a non-Section 8 scenario.
To conclude, while the FMR-based gross yield of 5.64% provides a baseline for investment considerations, it is essential to gather more comprehensive data on local rental markets and property values to make informed decisions. Landlords and investors should also factor in the operational costs and the administrative requirements of participating in the Section 8 program when evaluating these figures.
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.