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 | $650 |
| 1 Bedroom | $720 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,380 |
| 5 Bedrooms | $1,601 |
| 6 Bedrooms | $1,793 |
| 7 Bedrooms | $1,936 |
| 8 Bedrooms | $2,033 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $920 | $69,780 | 1.32% | A |
| 3BR | $1,260 | $142,000 | 0.89% | C |
U.S. Census Bureau data (2024)
The classification of ZIP code 74849 (Konawa, OK) hinges on the balance between yield and stability. On the yield axis, the Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $940, while the local market rate stands at $648. This indicates that the rental market in Konawa offers a significant discount over the FMR, suggesting that landlords can potentially achieve higher yields when participating in the Section 8 program. The median home value of $121,650 further supports the notion of a high-yield environment, as it allows for relatively low-cost property acquisitions.
Moving to the stability axis, the data reveals that 30.4% of residents are renters, which is a moderate figure and implies some level of tenant turnover risk. However, the absence of data on days on market (DOM) could indicate either stable occupancy rates or a lack of recent sales activity, which might be worth investigating further. The average household income of $41,053 suggests that tenants relying on Section 8 assistance would constitute a substantial portion of the population, which could affect both the demand for subsidized housing and the overall economic stability of the area.
Given these factors, ZIP 74849 leans towards being a high-yield market due to the disparity between the FMR ($940) and the market rate ($648), alongside the affordable median home value ($121,650). However, the stability aspect is less clear-cut; the moderate renter percentage (30.4%) and lower average income ($41,053) point to potential challenges in maintaining consistent cash flow. Without additional data on DOM, it's difficult to make a definitive call on the stability of the rental market.
In summary, ZIP 74849 presents opportunities for high yields through the Section 8 program but requires careful consideration of the stability risks associated with tenant turnover and economic conditions. Landlords and small-portfolio investors should proceed with an understanding of the potential for fluctuating cash flows despite the attractive rental discounts.
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.