Location: Pottawatomie County, OK | Metro: Oklahoma City, OK HUD Metro FMR Area
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 | $720 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,230 |
| 4 Bedrooms | $1,430 |
| 5 Bedrooms | $1,659 |
| 6 Bedrooms | $1,858 |
| 7 Bedrooms | $2,007 |
| 8 Bedrooms | $2,107 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $920 | $130,785 | 0.7% | D |
| 3BR | $1,230 | $234,110 | 0.53% | F |
| 4BR | $1,430 | $339,926 | 0.42% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 74851, which includes McLoud, OK, in Pottawatomie County, are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code is set at $930 per month for the fiscal year 2024. This figure represents the maximum amount that the housing authority will pay towards the rent of a two-bedroom unit. However, it's important to understand that the SAFMR is not the only factor in determining the total payment to landlords.
In ZIP 74851, the local market rent for a two-bedroom apartment is reported at $701 based on Census ACS data. This indicates that the SAFMR is higher than the average market rent, which can be beneficial for landlords who are willing to participate in the program.
A Section 8 voucher works by covering the difference between the tenant’s portion of the rent and the total rent amount. Typically, tenants contribute 30% of their adjusted income toward rent. If we assume an average adjusted income of $1,500 for a tenant in this area, the tenant would pay approximately $450 towards rent. The housing authority then covers the remaining balance up to the SAFMR limit of $930. In addition to rent, there are utility allowances that vary but generally range around $200 to $300 per month depending on the household size and energy needs.
For a landlord, this means receiving a guaranteed monthly payment that consists of the tenant contribution plus the housing authority subsidy. Given the local market rent of $701, if you charge this amount, the housing authority would cover the remainder up to the SAFMR. Thus, for a $701 rent, the housing authority would pay $480 ($930 - $450), ensuring the landlord receives the full market rent of $701.
If you decide to charge above the market rent, say $930, the housing authority would still only pay up to $930 minus the tenant’s contribution of $450, leaving the landlord with $480 from the housing authority and the full $930 rent. This scenario leaves a surplus for the landlord, as they receive more than the local market rent.
However, it's critical to note that charging exactly the SAFMR does not guarantee a surplus since the tenant's contribution can vary based on their income. For instance, if the tenant has a lower income, their contribution could be less, resulting in a smaller reimbursement from the housing authority. Conversely, if the tenant's income is higher, their contribution might be closer to the market rent, reducing the need for a large subsidy.
In summary, landlords in ZIP 74851 can expect a typical reimbursement gap or surplus when participating in the Section 8 program. With a SAFMR of $930 and a market rent of $701, landlords are likely to see a surplus when the total rent is set at or slightly below the SAFMR. This surplus ranges from $129 to $229 per month, depending on the exact rent charged and the tenant's income contribution. Landlords should carefully consider these factors when setting their rental rates to ensure financial stability and compliance with the program guidelines.
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.