Location: Pushmataha County, OK | Metro: Choctaw County, OK
| Unit Size | Monthly FMR |
|---|---|
| Studio | $820 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,490 |
| 5 Bedrooms | $1,728 |
| 6 Bedrooms | $1,935 |
| 7 Bedrooms | $2,090 |
| 8 Bedrooms | $2,195 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 74735 provides a clear picture of potential investment returns for landlords and small-portfolio investors. Using the annualized Fair Market Rent (FMR) for a 2-bedroom apartment at $1,110 per month (FY 2026, metro), and the market rent at $871 per month (based on Census ACS data), we can calculate the implied gross yields against the median home value of $198,333.
First, let's consider the scenario using the FMR. At $1,110 per month, the annual rent would be $13,320. Dividing this by the median home value of $198,333 gives an implied gross yield of approximately 6.7%. This figure represents the annual rental income relative to the property's value under the Section 8 program.
Next, examining the market rent scenario, at $871 per month, the annual rent amounts to $10,452. When compared to the median home value of $198,333, this yields an implied gross yield of about 5.3%. This calculation reflects the potential income based on current market conditions without the benefit of the higher FMR rates.
Given the 22.7% renter density in ZIP 74735, it is important to note that the number of days on the market (DOM) is listed as N/A, indicating either a lack of available data or a highly competitive rental market where properties are leased quickly. The higher gross yield from the FMR scenario suggests a more favorable return on investment for landlords participating in the Section 8 program. However, the actual market dynamics, including the competition for tenants and the administrative overhead associated with the Section 8 program, should be considered.
In conclusion, while the FMR scenario offers a higher gross yield of 6.7%, the market rent scenario provides a more conservative estimate of 5.3%. Landlords and investors must weigh these figures against the local market conditions and their willingness to engage with the Section 8 program's requirements. The choice between these two scenarios ultimately depends on individual risk tolerance and investment goals.
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.