Location: Pontotoc County, OK | Metro: Pontotoc County, OK
| Unit Size | Monthly FMR |
|---|---|
| Studio | $670 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $950 |
| 3 Bedrooms | $1,180 |
| 4 Bedrooms | $1,270 |
| 5 Bedrooms | $1,473 |
| 6 Bedrooms | $1,650 |
| 7 Bedrooms | $1,782 |
| 8 Bedrooms | $1,871 |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $970 for ZIP 74843 can adequately cover the mortgage on a typical home. Unfortunately, the data does not provide an exact average home price for ZIP 74843, making it difficult to calculate a precise mortgage amount. However, it's important to consider that FMR is set to ensure affordability for low-income households and may not reflect the full market value needed to cover mortgage payments.
The rental market in ZIP 74843 has a vacancy rate of 5.9%, which raises concerns about demand. While this rate suggests there are more units available than occupied, it also indicates a relatively balanced market. Rental properties in this area typically fall within the range of $750 to $999 per month, inclusive of utilities. This pricing aligns closely with the FMR, suggesting that there is indeed sufficient demand at these rates, though the specific figure of 5.9% leaves room for interpretation regarding the overall health of the rental market.
Another concern is whether housing vouchers will keep up with the market rents in ZIP 74843. The data does not provide specific trends for voucher usage in this ZIP code. However, historically, voucher programs have struggled to match rising market rents, especially in areas with limited supply. Landlords should be aware that while vouchers can stabilize occupancy, they may not always cover the full market rent, particularly if the area experiences economic growth or increased demand for rental properties.
To summarize, while the FMR of $970 is indicative of what low-income households can afford, it may not fully cover the mortgage on a typical home in ZIP 74843. The vacancy rate of 5.9% suggests a reasonable level of demand, but the specific impact of this rate on rental income remains uncertain without more detailed local market analysis. Lastly, the future of housing vouchers in relation to market rents is unclear, and landlords should prepare for potential shortfalls in voucher coverage.
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.