Location: Pushmataha County, OK | Metro: McCurtain County, OK
| Unit Size | Monthly FMR |
|---|---|
| Studio | $640 |
| 1 Bedroom | $720 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,230 |
| 4 Bedrooms | $1,400 |
| 5 Bedrooms | $1,624 |
| 6 Bedrooms | $1,819 |
| 7 Bedrooms | $1,965 |
| 8 Bedrooms | $2,063 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 74728, Broken Bow, OK, reveals a notable gap between the Federal Market Rent (FMR) and the actual market rent figures. Using the annualized 2BR FMR of $940 for fiscal year 2026, the implied gross yield would be approximately 2.91%. This calculation is derived by multiplying the monthly FMR of $940 by 12 months, resulting in an annual rental income of $11,280, and then dividing that by the median home value of $323,233.
In contrast, using the market rent figure of $677 from the Census ACS, the implied gross yield drops significantly to about 2.12%. This lower yield is calculated by multiplying the monthly market rent of $677 by 12 months, yielding an annual rental income of $8,124, and then dividing that by the median home value of $323,233.
Given the specific context of Broken Bow, the market rent scenario appears more realistic. The area has a relatively low renter density at 25.7%, indicating that the majority of residents prefer homeownership over renting. Additionally, the days-on-market (DOM) statistic of 160 days suggests a slow rental market, where properties take longer to lease out. These factors imply that landlords in Broken Bow should expect to operate closer to the market rent of $677 rather than the higher FMR of $940.
To summarize, while the FMR scenario provides a gross yield of 2.91%, the actual market conditions point towards a more realistic gross yield of 2.12%. Landlords and small-portfolio investors should consider these figures when evaluating the potential returns of properties in ZIP code 74728.
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.