Location: Pontotoc County, OK | Metro: Oklahoma City, 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 | $740 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $980 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,310 | $218,559 | 0.6% | F |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 74831 in Pontotoc County, OK, reveals a significant opportunity for investors looking to enter the rental market with HUD-subsidized tenants. The HUD Fair Market Rent (FMR) for the area is set at $920 per month for the fiscal year 2024. This figure is notably higher than the average market rent of $597 per month, based on Census ACS data.
Voucher tenants in ZIP 74831 cashflow comfortably at the HUD FMR. Landlords can expect to receive a monthly payment that exceeds the typical market rent by a substantial margin, ensuring positive cash flow without the need for premium units. This makes the area particularly attractive for small-portfolio investors seeking stable, above-market returns.
To further understand the investment potential, consider the median home value of $213,994. Using the HUD FMR of $920, the rent-to-price ratio is approximately 0.0052 (or 52 cents per dollar of property value). This ratio indicates that the rental income generated by properties in this area is relatively high compared to their purchase price, which is favorable for investors focused on cash flow.
Note that the data does not provide a median Days on Market (DOM) or a percentage of price cuts, which would be relevant for assessing the rent-versus-buy dynamics. However, given the favorable rent-to-price ratio and the positive cash flow from voucher tenants, these metrics are less critical for determining investment viability.
The strongest angle for investors in ZIP 74831 is cash flow. With the HUD FMR well above the market rent, landlords can expect consistent, above-average monthly income from Section 8 tenants without the risks associated with premium unit investments.
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.