Location: Seminole County, OK | Metro: Okmulgee County, 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 | $690 |
| 1 Bedroom | $700 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,160 |
| 4 Bedrooms | $1,280 |
| 5 Bedrooms | $1,485 |
| 6 Bedrooms | $1,663 |
| 7 Bedrooms | $1,796 |
| 8 Bedrooms | $1,886 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $920 | $70,575 | 1.3% | A |
| 3BR | $1,160 | $156,567 | 0.74% | D |
| 4BR | $1,280 | $229,209 | 0.56% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking into the ZIP code 74859, located in Okemah, Oklahoma, might raise several valid concerns regarding the feasibility of investing in rental properties under the Section 8 program. Here are three key objections and their corresponding analyses based on available data.
Objection 1: Will Fair Market Rent (FMR) of $890 cover the mortgage on a $142,496 home?
The Fair Market Rent (FMR) for ZIP 74859 in fiscal year 2024 is set at $890. To determine if this amount can cover the mortgage, we need to consider the typical interest rates and loan terms. Assuming a 30-year fixed-rate mortgage with an interest rate of 5%, the monthly mortgage payment on a $142,496 home would be approximately $750. Therefore, the FMR of $890 does cover the mortgage payment, leaving a buffer of around $140 per month for other expenses such as maintenance, property taxes, and insurance. However, it's important to note that these calculations assume a down payment was made; otherwise, the mortgage payment could be higher.
Objection 2: Is there enough renter demand at 37.4%?
The percentage of renter-occupied housing units in ZIP 74859 stands at 37.4%. This figure suggests a moderate level of demand for rental properties. While it may not indicate a high-demand area, it still represents a significant portion of the housing market. The demand for rental properties in this ZIP code is likely influenced by factors such as job availability, population growth, and the overall economic climate. It's worth noting that the data does not provide insights into the specific demand for Section 8 rentals, which may differ from the general rental market due to eligibility requirements and administrative processes.
Objection 3: Will vouchers keep pace with $721 market rents?
The average market rent in ZIP 74859 is reported to be $721. Given that the FMR is set higher at $890, landlords participating in the Section 8 program should theoretically receive a subsidy that keeps pace with market rents. However, the actual voucher amounts can vary based on individual tenant circumstances and the local housing authority's policies. If the voucher amounts consistently fall below the $721 market rent, landlords might struggle to cover their costs without additional income sources or subsidies. The data does not provide a direct comparison between the voucher amounts and the market rents, so further investigation into the local housing authority's practices is recommended.
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.