Section 8 Fair Market Rent (FMR) for ZIP 74801 - 2027

Location: Pottawatomie County, OK | Metro: Pottawatomie County, OK

Investment Score for ZIP 74801

A
Monthly Rent (2BR)
$980
Median Price (2BR)
$79,069
1% Rule
1.24%
Annual Yield
14.87%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$740
1 Bedroom$750
2 Bedrooms$980
3 Bedrooms$1,310
4 Bedrooms$1,540
5 Bedrooms$1,786
6 Bedrooms$2,000
7 Bedrooms$2,160
8 Bedrooms$2,268

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
2BR $980 $79,069 1.24% A
3BR $1,310 $149,369 0.88% C
4BR $1,540 $256,718 0.6% F
5BR $1,786 $333,681 0.54% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
21,967
Median Household Income
$55,077
Housing Units
9,837
Renter Percentage
37.2%
Occupancy Rate
85.4%
Renter Occupied
3,125

The ZIP code 74801 in Shawnee, OK, presents an interesting balance between yield and stability. On the yield axis, the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $980, while the market rent stands at $1,096. This indicates a potential for higher rental income compared to the FMR, which could be beneficial for landlords looking to maximize their returns. Additionally, the median home value of $136,813 suggests that there is a moderate level of investment required to enter this market, which can be offset by the higher-than-FMR rental rates.

On the stability axis, the data points towards a somewhat stable environment. With 37.2% of residents being renters, there is a decent demand for rental properties. The average days on market (DOM) for rentals is 24 days, indicating that properties are typically rented out relatively quickly. However, the median household income of $55,077 is lower than the national average, which might affect tenants' ability to pay higher rents consistently.

Based on these figures, ZIP 74801 leans more towards a steady-cashflow zone. The market rent above the FMR provides a reasonable yield, and the quick turnover rate suggests a stable tenant base. However, the lower median income implies that landlords should focus on properties that cater to middle-income tenants, ensuring a balance between rental pricing and affordability. This approach will help maintain occupancy rates and ensure a steady cash flow without relying on high-risk, high-reward strategies typical of flip-style markets.

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.