Location: Pontotoc County, OK | Metro: Garvin 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 | $660 |
| 1 Bedroom | $700 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,140 |
| 4 Bedrooms | $1,390 |
| 5 Bedrooms | $1,612 |
| 6 Bedrooms | $1,805 |
| 7 Bedrooms | $1,949 |
| 8 Bedrooms | $2,046 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,140 | $208,113 | 0.55% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 74865 reveals a market that is positioned between high-yield and steady-cashflow zones, leaning slightly towards the latter due to several key factors.
Firstly, let's consider the yield aspect. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $940. This figure represents the average rent for a typical unit in the area. However, the actual market rent for ZIP 74865 stands at $708, indicating a lower rent environment compared to the broader metro area. Additionally, the median home value in this ZIP code is $202,431, which is relatively moderate and suggests that there is a balance between rental yields and property values. While it might not offer the highest potential for flipping properties, it does provide a reasonable rental income that can be attractive to landlords and small-portfolio investors.
Moving on to stability, the ZIP code shows a rental rate of 18.5% of residents being tenants. This percentage is not exceptionally high, suggesting a mix of homeowners and renters, which can contribute to a stable local economy. The lack of data on days-on-market (DOM) makes it challenging to assess how quickly rental units can be filled, but the median income of $65,000 indicates that the area has a decent economic foundation. Tenants with this level of income are likely to have stable employment, leading to predictable and consistent rental payments.
Given these figures, ZIP 74865 is best classified as a steady-cashflow zone. The lower market rent compared to the metro FMR suggests that while yields may not be the highest, they are still respectable given the home values. Furthermore, the moderate rental rate and median income point towards a stable tenant base, reducing the risk of vacancy and default. For landlords and small-portfolio investors looking for a reliable source of income without the volatility associated with higher-yield markets, ZIP 74865 presents a favorable opportunity.
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.