Location: Murray County, OK | Metro: Johnston County, OK
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,650 |
| 5 Bedrooms | $1,914 |
| 6 Bedrooms | $2,144 |
| 7 Bedrooms | $2,316 |
| 8 Bedrooms | $2,432 |
U.S. Census Bureau data (2024)
The ZIP code 74856, located in Mill Creek, OK, presents a unique set of challenges and opportunities for landlords and small-portfolio investors. Let's address some common objections raised by skeptical investors.
Objection 1: Will Fair Market Rent (FMR) of $1,060 (metro FY 2026) cover the mortgage on a $153,832 home?
In ZIP 74856, the median home price is significantly lower than the national average, making it feasible for rental income to cover mortgage expenses. Assuming a typical interest rate of 4% and a 30-year fixed mortgage, the monthly payment on a $153,832 home would be approximately $730. With an FMR of $1,060, the rental income easily surpasses the mortgage cost, leaving room for maintenance and other expenses.
Objection 2: Is there enough renter demand at 15.6%?
The percentage of renters in ZIP 74856 is indeed low at 15.6%, which might raise concerns about finding tenants. However, this figure indicates a stable housing market where homeownership is valued. While it may take longer to fill vacancies compared to areas with higher renter populations, the lower competition for rental properties can still make it a viable investment. Additionally, the area's demographics suggest a steady population that could support a consistent rental base.
Objection 3: Will vouchers keep pace with $967 market rents?
The voucher amount may not fully cover the $967 market rent, but it does provide a reliable source of income. According to HUD guidelines, voucher holders typically pay 30% of their adjusted income toward rent, while the remaining balance is covered by the program. This arrangement ensures that landlords receive a predictable and government-backed income, albeit not at market rates. It's important to note that voucher holders often value stability and long-term tenancy, which can be beneficial for property owners.
In conclusion, while there are valid concerns regarding mortgage coverage, renter demand, and voucher adequacy, the data suggests that ZIP 74856 offers a balanced opportunity for real estate investment. The potential for rental income to exceed mortgage costs, combined with a stable tenant pool, makes it a promising area for landlords and small-portfolio investors.
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.