Location: Kay County, OK | Metro: Tulsa, OK HUD Metro FMR Area
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 | $650 |
| 1 Bedroom | $710 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,200 |
| 4 Bedrooms | $1,270 |
| 5 Bedrooms | $1,473 |
| 6 Bedrooms | $1,650 |
| 7 Bedrooms | $1,782 |
| 8 Bedrooms | $1,871 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $920 | $145,037 | 0.63% | D |
| 3BR | $1,200 | $208,465 | 0.58% | F |
| 4BR | $1,270 | $304,148 | 0.42% | F |
| 5BR | $1,473 | $432,239 | 0.34% | F |
U.S. Census Bureau data (2024)
The classification of ZIP 74604 (Ponca City, OK) hinges on the interplay between rental yields and market stability, as derived from the given data points. The Fair Market Rent (FMR) for Section 8 in ZIP 74604 for fiscal year 2024 is set at $890. This compares favorably to the local market rate of $823, indicating a modest premium for Section 8 tenants. However, the median home value in the area stands at $216,990, which suggests that the overall real estate investment cost is relatively high.
On the stability axis, the data reveals that only 19.9% of the population are renters, which is a low figure. This percentage indicates that the demand for rental properties might be limited, leading to potential challenges in maintaining a steady cash flow. Additionally, the average household income is $80,331, which is an important factor for assessing the financial health of potential tenants. Despite this, the lack of data on the number of days on market (DOM) makes it difficult to fully evaluate the speed at which properties can be rented out, which is crucial for assessing liquidity and stability.
Given these figures, ZIP 74604 leans towards being a steady-cashflow zone rather than a high-yield/low-stability market. The slight premium for Section 8 tenants over market rates suggests that there is some positive yield, but the low renter population percentage implies that the market is not particularly volatile. Instead, it appears to offer a more stable environment where landlords can expect consistent, though not exceptionally high, returns on their investments.
To further clarify the investment potential, consider the following:
In conclusion, ZIP 74604 presents a balanced scenario for real estate investment, favoring a steady-cashflow approach over a high-risk, high-reward strategy. The data supports a moderate yield with relatively low volatility, making it suitable for landlords and small-portfolio investors looking for reliable returns.
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.