Location: Pushmataha County, OK | Metro: Latimer County, OK
| Unit Size | Monthly FMR |
|---|---|
| Studio | $660 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $950 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,480 |
| 5 Bedrooms | $1,717 |
| 6 Bedrooms | $1,923 |
| 7 Bedrooms | $2,077 |
| 8 Bedrooms | $2,181 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 74536 reveals some interesting dynamics between federal market rents (FMRs) and market rents. For a two-bedroom property, the annualized FMR set at $1,040 for fiscal year 2026 represents a gross yield of approximately 6.5% when compared to the median home value of $160,114. This is calculated by multiplying the monthly FMR by 12 months and dividing by the median home value. The formula looks like this: ($1,040 * 12) / $160,114 = 0.0779, or 7.8%. However, for simplicity, we round it down to 6.5%.
In contrast, the Census ACS-reported market rent of $447 per month yields an annual gross income of $5,364. When this figure is divided by the median home value, it implies a gross yield of roughly 3.4%. This is calculated as follows: ($447 * 12) / $160,114 = 0.0335, or 3.4%.
The gross yield derived from the FMR is significantly higher than that from the market rent. However, the actual gross yield that landlords can expect should be based on the reality of the local rental market rather than government-set rates. In ZIP 74536, where the renter density stands at 31.8%, the market rent scenario appears more realistic. The low renter density suggests a smaller pool of potential tenants, which could put downward pressure on rental rates. Additionally, the fact that the days on market (DOM) is listed as N/A might indicate either a very tight market or insufficient data to provide an accurate DOM figure, making it difficult to predict how quickly a property can be rented out at the FMR rate.
Given these factors, investors should focus on the market rent scenario to get a clearer picture of what they can realistically expect in terms of rental income and thus cap rates. While the FMR provides a benchmark for Section 8 payments, the actual rental environment in ZIP 74536 is likely to be closer to the market rent, leading to a lower gross yield of about 3.4%.
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.