Location: Payne County, OK | Metro: Lincoln County, OK HUD Metro FMR Area
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 | $880 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,340 | $248,105 | 0.54% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $890 for ZIP 74824 can sufficiently cover the mortgage on a property valued at $224,681. To address this, let's break down the numbers. Assuming a standard 30-year fixed-rate mortgage with an interest rate of around 4%, the monthly payment on a $224,681 home would be approximately $1,070. This means that the FMR of $890 falls short by about $180 per month. However, it's important to note that the FMR represents the maximum amount a landlord can charge for a Section 8 voucher, and it does not include potential rental subsidies or additional income sources such as laundry facilities or parking fees.
The second objection could be regarding the level of renter demand in ZIP 74824, which stands at 22.5%. This percentage indicates the proportion of households that are renters. While this figure might seem low, it's crucial to understand that even a small percentage can translate into a significant number of potential tenants depending on the total population size of the area. Additionally, the demand for rental properties can vary widely based on factors such as job availability, student populations, and overall economic conditions, which are not fully captured by the simple percentage of renters.
A final concern might be whether the Housing Choice Voucher Program will keep up with the market rents, which are currently around $800. The FMR of $890 for the zip code is higher than the market rent, suggesting that vouchers should be able to cover the cost of renting in the area. However, the actual ability of tenants to secure housing also depends on the number of available vouchers and the competition among landlords willing to accept them. If the supply of vouchers is limited, landlords might face challenges in filling units despite the favorable FMR-to-market-rent ratio.
In conclusion, while the FMR of $890 might not fully cover the mortgage on a $224,681 home, it provides a solid foundation for rental income. The 22.5% renter demand suggests a steady pool of potential tenants, though it's not a high percentage. Lastly, the Housing Choice Voucher Program appears capable of keeping pace with market rents, but the success in securing tenants will depend on the local dynamics of voucher distribution and landlord participation.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.