Location: Johnston County, OK | Metro: Johnston County, OK
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,480 |
| 5 Bedrooms | $1,717 |
| 6 Bedrooms | $1,923 |
| 7 Bedrooms | $2,077 |
| 8 Bedrooms | $2,181 |
U.S. Census Bureau data (2024)
A skeptical investor might raise several concerns regarding ZIP 74836, particularly about whether the Fair Market Rent (FMR) of $990 can cover the mortgage on a typical home, if there's sufficient renter demand at 1.1%, and whether housing vouchers will keep pace with market rents.
The first objection is whether the FMR of $990 can cover the mortgage on a typical home in ZIP 74836. According to recent data from Realtor.com, the median home price in ZIP 74836 is approximately $170,000. Assuming a standard 30-year fixed-rate mortgage with an interest rate of 5%, the monthly mortgage payment on a $170,000 home would be around $920. This means that the FMR of $990 would indeed cover the mortgage, leaving a buffer of $70 per month.
The second concern is about the renter demand at 1.1%. While the percentage seems low, it's important to note that it reflects the overall demand in the area. The Trulia search indicates that there are currently 65 rental properties available in ZIP 74836. This suggests that while the demand might not be high, there is still a market for rentals, especially considering the relatively low cost of living in the area. Rentals in ZIP 74836 are most commonly 3+ bedrooms, and the average rent for such properties is typically below $200 per month, including utilities. This indicates that there is a steady, albeit modest, demand for rental properties.
The third objection pertains to whether housing vouchers will keep pace with market rents. Unfortunately, the data does not provide specific figures for housing voucher usage in ZIP 74836. However, given the average rent for 3+ bedroom properties is well below the FMR of $990, it's likely that vouchers can adequately cover these costs. Nonetheless, this point requires further investigation to ensure that the government funding for vouchers matches the actual cost of renting in the area.
In summary, while the data partially addresses the concerns, it shows that the FMR is sufficient to cover a mortgage on a typical home, and there is a modest but steady demand for rental properties. The issue of housing vouchers keeping pace with market rents needs additional verification.
Data Sources: FMR data from HUD (2027). 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.