Location: Choctaw County, OK | Metro: Choctaw 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 | $700 |
| 1 Bedroom | $700 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,130 |
| 4 Bedrooms | $1,200 |
| 5 Bedrooms | $1,392 |
| 6 Bedrooms | $1,559 |
| 7 Bedrooms | $1,684 |
| 8 Bedrooms | $1,768 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,130 | $195,412 | 0.58% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP code 74759 might have several concerns regarding the feasibility of renting out properties under the Section 8 program. Let's delve into these concerns using the provided data points.
Objection 1: Will FMR $940 (metro FY 2026) cover the mortgage on a $173,032 home?
The Fair Market Rent (FMR) of $940 for ZIP 74759 does not guarantee full coverage of the mortgage on a home valued at $173,032. To determine if the FMR can cover the mortgage, we must consider the interest rate and loan terms. Assuming a standard 30-year fixed-rate mortgage at an average interest rate of 5%, the monthly payment would be approximately $925. This means that the FMR could indeed cover the mortgage, but it leaves little room for additional expenses such as maintenance, property taxes, and insurance.
Objection 2: Is there enough renter demand at 15.5%?
The rental demand in ZIP 74759 stands at 15.5%. This percentage suggests that there is moderate demand for rental properties. However, it is important to note that while this figure indicates the proportion of households renting, it does not provide a complete picture of the number of renters seeking Section 8 housing. The data does not specify the exact number of renters who qualify for or are interested in Section 8 housing, so it's difficult to make a definitive statement on the adequacy of demand for Section 8 units specifically.
Objection 3: Will vouchers keep pace with $656 market rents?
The market rent of $656 is below the FMR of $940, indicating that the voucher amount should cover the market rent. However, whether vouchers will keep pace with future increases in market rents is uncertain based on the given data. Voucher amounts are adjusted annually according to local market conditions and federal guidelines, but the specifics of how much they will increase in ZIP 74759 are not provided here. Landlords must monitor these adjustments closely to ensure they remain financially viable.
In conclusion, while the FMR can cover the mortgage and exceed the market rent in ZIP 74759, the data does not fully address all concerns. The demand for Section 8 housing remains somewhat ambiguous, and the long-term financial stability requires vigilance over annual voucher adjustments and potential changes in market conditions.
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.