Location: Pontotoc County, OK | Metro: Pontotoc County, OK
| Unit Size | Monthly FMR |
|---|---|
| Studio | $660 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $950 |
| 3 Bedrooms | $1,180 |
| 4 Bedrooms | $1,250 |
| 5 Bedrooms | $1,450 |
| 6 Bedrooms | $1,624 |
| 7 Bedrooms | $1,754 |
| 8 Bedrooms | $1,842 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 74844 provides a critical insight into potential investment opportunities. The Fair Market Rent (FMR) for a 2-bedroom apartment in the metro area for fiscal year 2026 is set at an annualized figure of $950. Meanwhile, the market rent based on Census ACS data stands at $916 annually.
To understand the gross yield, we need to compare these rents against the median home value. However, the median home value for ZIP 74844 is currently not available, which complicates direct comparisons. Despite this, we can still evaluate the gross yields implied by each scenario.
In the case of the Section 8 FMR, the gross yield would be based on the $950 annual rent. For the market rent scenario, it would be based on the $916 annual rent. Given that the FMR is slightly higher, it suggests a marginally better gross yield for properties participating in the Section 8 program. Yet, the absence of median home values means we cannot calculate precise cap rates.
The renter density in ZIP 74844 is 41.1%, indicating a significant portion of the population is renting. This makes the market rent scenario more realistic for general investment considerations, as it reflects the broader rental market conditions. Additionally, the lack of data on days on market (DOM) suggests a stable rental environment where properties are likely to be occupied promptly.
Investors should consider the higher FMR offered by Section 8 as a potential safeguard against market fluctuations. However, the slightly lower market rent of $916 still offers a solid basis for calculating expected returns. The decision between the two should factor in the local rental demand and the stability provided by government-backed Section 8 contracts versus the flexibility and potentially higher returns from market-rate rentals.
Given the data constraints, the market rent of $916 per month offers a clearer picture for investors looking to gauge potential gross yields. The Section 8 FMR of $950, while higher, must be weighed against the specific requirements and limitations of the program.
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.