Location: Seminole County, OK | Metro: Pottawatomie 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 | $680 |
| 1 Bedroom | $710 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,410 |
| 5 Bedrooms | $1,636 |
| 6 Bedrooms | $1,832 |
| 7 Bedrooms | $1,979 |
| 8 Bedrooms | $2,078 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $920 | $162,788 | 0.57% | F |
| 3BR | $1,240 | $236,309 | 0.52% | F |
U.S. Census Bureau data (2024)
The rental market in ZIP code 74840, which encompasses Earlsboro, Oklahoma, presents a nuanced landscape for both renters and landlords. The median household income stands at $54,191, a figure that must be considered against the backdrop of the local market rate for rent, which is $925 per month according to Census ACS data. This places a significant burden on renters, who must allocate nearly one-fifth of their annual income towards housing costs, assuming no other financial obligations.
To put this into perspective, the Fair Market Rent (FMR) for the area, set at $940 for metro FY 2026, is only slightly higher than the current market rate. This means that the difference between what renters are paying and what the government considers fair is minimal, highlighting a narrow margin for affordability. For a household earning the median income, the cost of renting at the market rate would consume approximately 20.5% of their monthly earnings, leaving limited room for other essential expenses such as food, healthcare, and transportation.
With only 13.5% of the population being renters and a total population of 1,827, the competition among landlords is relatively low compared to densely populated areas. However, this also implies that there is a smaller pool of potential tenants, making it crucial for landlords to understand the financial capabilities of the local rental market. The affordability gap suggests that many households might struggle to meet the market rate without assistance, potentially leading to a higher demand for Section 8 vouchers.
For landlords considering whether to accept voucher tenants or focus on cash-paying residents, the analysis points to the importance of understanding the local economic conditions. Given the median income and the high rent-to-income ratio, accepting Section 8 vouchers could provide a steady stream of reliable tenants, albeit with the stipulation that rents cannot exceed the FMR of $940. On the other hand, landlords who choose to pursue cash-paying tenants must be prepared to offer competitive pricing or amenities to attract and retain occupants in a market where affordability is a pressing concern.
Takeaway: Landlords in ZIP 74840 should weigh the benefits of Section 8 vouchers, which ensure consistent payments but limit rent increases, against the potential of securing cash-paying tenants willing to pay the market rate of $925. The decision should be informed by an assessment of the local rental demand and the willingness of tenants to comply with either strategy.
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.