Location: Hughes County, OK | Metro: Hughes 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 | $720 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $950 |
| 3 Bedrooms | $1,130 |
| 4 Bedrooms | $1,350 |
| 5 Bedrooms | $1,566 |
| 6 Bedrooms | $1,754 |
| 7 Bedrooms | $1,894 |
| 8 Bedrooms | $1,989 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,130 | $189,805 | 0.6% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 74531 might raise several valid concerns regarding the feasibility of investing in rental properties within this area. Here, we address those objections directly using the available data.
The first objection is whether the Fair Market Rent (FMR) of $950 for the fiscal year 2026 will sufficiently cover the mortgage on a home valued at $176,974. The FMR is a guideline set by the U.S. Department of Housing and Urban Development (HUD) to determine payment standards for housing assistance programs. However, it does not directly correlate to the mortgage cost of a property. To accurately assess if the FMR covers the mortgage, one would need to consider the interest rates, loan terms, and down payment percentage. HUD's FMR is designed to ensure that rental properties are affordable, but it does not guarantee profitability for landlords without additional financial analysis.
The second concern is the level of renter demand, given that only 23.2% of households are renters. This figure suggests that while there is some demand for rental properties, it is not particularly high compared to other areas. For small-portfolio investors, this means that finding tenants could be slightly more challenging, and they should prepare for potentially longer vacancy periods. It is crucial to note that a lower percentage of renters does not necessarily indicate low demand; rather, it reflects the overall composition of homeownership versus renting in the area. Investors must also consider the local job market, population growth trends, and the attractiveness of the area to potential renters.
The third objection pertains to the ability of housing vouchers to keep pace with the market rent of $629. Vouchers are an essential component of rental income for many landlords, especially in areas with significant low-income populations. While the voucher amount can vary widely depending on the specific program and the individual tenant's needs, the data does not provide a direct comparison between the average voucher amount and the market rent. HUD adjusts voucher amounts periodically to reflect changes in the cost of living and market conditions. Therefore, it is reasonable to expect that voucher amounts will adjust to remain competitive with market rents, though this is not guaranteed. Landlords should monitor local HUD adjustments and understand the voucher process to mitigate risks.
In summary, while ZIP 74531 presents some challenges for investors, such as ensuring that the FMR adequately covers mortgage costs and dealing with moderate renter demand, the data suggests that these issues can be managed with proper planning and understanding of local market dynamics. The long-term stability of voucher programs remains uncertain but is typically adjusted to align with market conditions.
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.