Section 8 Fair Market Rent (FMR) for ZIP 74727 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Housing Authorities Serving ZIP 74727

• Housing Authority of the City of Hugo (Hugo, OK) - 182 Section 8 vouchers
• Housing Authority of the City of Atoka (Atoka, OK)
• Housing Authority of the City of Boswell (Boswell, OK)

A skeptical investor considering ZIP 74727 might raise several concerns regarding the feasibility of investing in rental properties within this area. Let's address these concerns with the available data.

• Will FMR $940 (metro FY 2026) cover the mortgage on a $133,031 home? The Fair Market Rent (FMR) of $940 for ZIP 74727 suggests that a landlord can expect to charge this amount per month for a typical two-bedroom apartment. To determine if this covers the mortgage, we need to consider the mortgage rate and term length. Assuming a standard 30-year fixed-rate mortgage at an average interest rate of 5%, the monthly payment on a $133,031 home would be approximately $720. This means that the FMR of $940 does indeed cover the mortgage payment, leaving a buffer for maintenance, taxes, and insurance.
• Is there enough renter demand at 32.8%? With 32.8% of households renting, there is a significant portion of the population in ZIP 74727 that relies on rental housing. However, this percentage alone does not guarantee strong demand. We must also consider the vacancy rate and the number of renters who qualify for the FMR level. If the vacancy rate is low and there is a steady supply of renters willing to pay around $940 per month, then the demand is likely sufficient. Unfortunately, the data provided does not include the vacancy rate or the exact number of qualified renters, so we cannot conclusively state whether the demand is robust based solely on the 32.8% figure.
• Will vouchers keep pace with $730 market rents? The voucher program is designed to help low-income families afford housing. If the market rent is $730, and the voucher amounts are regularly adjusted to reflect changes in the cost of living, then it is reasonable to assume that they will keep pace with market rents. However, the data does not specify the current average voucher amount or how frequently it is adjusted. Therefore, while it is possible that vouchers will keep up with market rents, this cannot be guaranteed without further information on voucher adjustments and the local housing market dynamics.

The data indicates that the FMR is sufficient to cover the mortgage on a median-priced home, but it falls short in providing a complete picture of the rental market's health and the adequacy of voucher programs. For a comprehensive analysis, additional metrics such as vacancy rates and historical trends in voucher amounts should be considered.

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.