Location: Seminole County, OK | Metro: Hughes 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 | $700 |
| 1 Bedroom | $700 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,140 |
| 4 Bedrooms | $1,310 |
| 5 Bedrooms | $1,520 |
| 6 Bedrooms | $1,702 |
| 7 Bedrooms | $1,838 |
| 8 Bedrooms | $1,930 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $920 | $44,737 | 2.06% | A+ |
| 3BR | $1,140 | $118,567 | 0.96% | C |
| 4BR | $1,310 | $170,810 | 0.77% | D |
U.S. Census Bureau data (2024)
A skeptical investor considering the ZIP code 74848 (Holdenville, OK) might have several valid concerns regarding the feasibility of investing in properties under the Section 8 program. Let's address these objections directly using the available data.
Objection 1: Will FMR $940 (metro FY 2026) cover the mortgage on a $92,385 home?
The Fair Market Rent (FMR) for Holdenville, OK, is set at $940 for FY 2026. This figure represents the average rent that a tenant can expect to pay for a two-bedroom apartment, which is often the basis for calculating rental assistance payments. To determine if this amount will cover the mortgage on a home priced at $92,385, we need to consider the interest rate and loan terms. Assuming a standard 30-year fixed-rate mortgage with an interest rate of 5%, the monthly mortgage payment would be approximately $480. At $940 per month, the FMR significantly exceeds the mortgage payment, leaving a comfortable margin for property taxes, insurance, maintenance, and profit.
Objection 2: Is there enough renter demand at 29.9%?
The rental demand in Holdenville, OK, is represented by the percentage of households that rent, which stands at 29.9%. While this number is lower than some metropolitan areas, it still indicates a substantial portion of the population relies on renting. However, the data does not provide a breakdown of how many of these renters qualify for Section 8 housing assistance. To fully assess demand, one would need to consult local housing authorities for the number of active voucher holders and waitlist sizes. Nonetheless, the presence of any rental demand suggests potential opportunities for landlords who can meet the needs of low-income tenants.
Objection 3: Will vouchers keep pace with $668 market rents?
The current market rent for a two-bedroom apartment in Holdenville, OK, is $668. The FMR of $940 is designed to reflect the cost of housing in the area, including market rents. If the voucher amount is adjusted to match the FMR, it should theoretically cover the market rent, leaving a buffer for landlords. However, the data does not specify the exact amount of the voucher or whether it adjusts annually to keep up with inflation and market changes. Landlords should check with the local Public Housing Agency (PHA) to confirm the current voucher rates and their adjustment policies.
In summary, while the data provides a solid foundation for addressing the concerns of a skeptical investor, there are gaps that require further investigation. The FMR comfortably covers the mortgage on a home priced at $92,385, indicating financial viability. The rental demand, though not high, is present and suggests a market for Section 8 properties. Lastly, while the FMR is higher than the current market rent, the specifics of voucher amounts and adjustments must be verified with local PHAs to ensure long-term financial stability.
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.