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 | $710 |
| 1 Bedroom | $720 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,460 |
| 5 Bedrooms | $1,694 |
| 6 Bedrooms | $1,897 |
| 7 Bedrooms | $2,049 |
| 8 Bedrooms | $2,151 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,250 | $240,198 | 0.52% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking at ZIP code 74878 might have several concerns regarding the feasibility of investing in a Section 8 property there. Let's address these objections head-on using the available data.
Objection 1: Will FMR $940 (zip FY 2024) cover the mortgage on a $215,327 home?
The Fair Market Rent (FMR) for ZIP 74878 in fiscal year 2024 is set at $940. To determine if this will cover the mortgage on a $215,327 home, we need to consider the interest rate and loan term. Assuming a typical 30-year fixed-rate mortgage at an average interest rate of 5%, the monthly mortgage payment would be approximately $1,150. This means that the FMR of $940 falls short by about $210 per month. However, it's important to note that FMRs can increase annually, potentially closing this gap in future years.
Objection 2: Is there enough renter demand at 10.4%?
The rental vacancy rate for ZIP 74878 is 10.4%. While this percentage suggests some availability, it does not necessarily indicate a lack of demand. A vacancy rate below 15% is generally considered healthy, meaning that the market is not oversaturated with rental properties. Landlords should also consider the local job market and population growth trends, which could affect the actual demand for rentals. The data does not provide specific figures on these trends, so further investigation into the area's economic health would be prudent.
Objection 3: Will vouchers keep pace with $792 market rents?
The voucher amount is expected to be $940, which exceeds the current market rent of $792. This indicates that voucher holders would likely be able to afford the rent, making them viable tenants. However, the sustainability of this situation depends on whether the market rent increases faster than the voucher amount. The data does not include projections for future market rent increases, so this remains uncertain. It's advisable to monitor local housing market trends and any changes in the voucher program to ensure continued alignment between voucher amounts and market rents.
In summary, while the FMR may not fully cover the mortgage payment based on current rates, the rental vacancy rate is within a healthy range, and voucher holders can currently afford market rents. These points should be carefully weighed against other local factors and long-term market trends before making an investment decision.
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.