Location: McCurtain County, OK | Metro: McCurtain 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 | $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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,230 | $166,753 | 0.74% | D |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 74740 provides a clear picture of potential rental income scenarios. Based on the annualized Fair Market Rent (FMR) for a two-bedroom apartment set at $940 for fiscal year 2026, and the Census ACS reported market rent of $567, we can derive two distinct gross yields.
First, using the Section 8 FMR of $940, the annual rental income for a two-bedroom property would be $11,280. Given the median home value in ZIP 74740 is $164,114, the implied gross yield from Section 8 participation would be approximately 6.87%. This calculation is derived by dividing the annual rental income ($11,280) by the median home value ($164,114).
Second, considering the market rent of $567, the annual rental income would be $6,804. The implied gross yield under this scenario would be approximately 4.15%, calculated similarly by dividing the annual rental income ($6,804) by the median home value ($164,114).
The 26.1% renter density suggests that there is a significant portion of the population in ZIP 74740 who are already renters, indicating a viable market for both Section 8 and market-rate rentals. However, the lack of data on days on market (DOM) makes it difficult to assess how quickly properties might be leased under either scenario.
Given the higher gross yield of 6.87% from participating in Section 8 compared to the 4.15% from market rents, it might seem more attractive at first glance. However, investors should consider that the higher yield from Section 8 does not necessarily translate into higher net operating income (NOI) due to the administrative overhead and the requirement to meet federal housing standards. The market rent scenario, while offering a lower gross yield, could potentially provide a more stable and predictable cash flow without the complexities associated with government programs.
In conclusion, while the Section 8 scenario offers a higher gross yield of 6.87% versus the market rent yield of 4.15%, the choice between the two depends on the investor's tolerance for administrative complexity and their preference for steady, market-driven returns over potentially higher but more regulated yields.
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.