Location: Coal 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 | $700 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,460 |
| 5 Bedrooms | $1,694 |
| 6 Bedrooms | $1,897 |
| 7 Bedrooms | $2,049 |
| 8 Bedrooms | $2,151 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $920 | $71,905 | 1.28% | A |
| 3BR | $1,260 | $137,004 | 0.92% | C |
| 4BR | $1,460 | $230,495 | 0.63% | D |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 74538 in Oklahoma reveals two distinct scenarios based on the Federal Market Rent (FMR) and the market rent figures provided. For the FMR scenario, using an annualized figure of $940 for a 2BR unit, the gross yield can be calculated. Given the median home value of $128,891, the annual rent income would be $11,280 ($940 multiplied by 12 months). This results in a gross yield of approximately 8.75% when divided by the median home value.
In contrast, the market rent scenario uses an annualized figure of $715 for a 2BR unit, derived from the Census ACS data. With this annual rent income of $8,580 ($715 multiplied by 12), the gross yield drops significantly to about 6.66% of the median home value.
The 36.6% renter density in ZIP 74538 suggests a moderate demand for rental properties, but it does not provide enough information to determine the exact feasibility of either scenario. The N/A-day DOM (days on market) indicates that there is limited data available regarding how quickly rental units are typically occupied in this area, which could impact the reliability of the gross yield estimates.
Considering the higher gross yield of 8.75% under the FMR scenario versus the 6.66% under the market rent scenario, the FMR scenario appears more favorable at first glance. However, the actual market conditions and the specifics of the property's location, condition, and amenities should be taken into account before making any investment decisions. Landlords and small-portfolio investors should also consider the potential challenges of obtaining Section 8 tenants, such as longer wait times and the need for property inspections that align with program standards.
The choice between these scenarios ultimately depends on the investor's risk tolerance and the specific circumstances of the property in question. While the FMR scenario offers a higher gross yield, the market rent scenario provides a more conservative estimate that might be closer to reality in terms of rental income stability.
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.