Location: Lincoln 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 | $800 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,220 |
| 4 Bedrooms | $1,420 |
| 5 Bedrooms | $1,647 |
| 6 Bedrooms | $1,845 |
| 7 Bedrooms | $1,993 |
| 8 Bedrooms | $2,093 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $920 | $124,458 | 0.74% | D |
| 3BR | $1,220 | $240,496 | 0.51% | F |
| 4BR | $1,420 | $353,803 | 0.4% | F |
U.S. Census Bureau data (2024)
ZIP 74881, located in Wellston, OK, presents a unique opportunity for inclusion in a Section 8 portfolio strategy. This area serves best as a cash-flow anchor due to the significant spread between the Fair Market Rent (FMR) and the actual market rent.
The HUD Metro FMR for a two-bedroom apartment in ZIP 74881 for fiscal year 2024 is set at $920. In contrast, the current market rent for the same unit is only $732. This discrepancy means that landlords participating in the Section 8 program can expect to receive higher rents than what the market would typically offer, thus providing a stable and predictable cash flow. The difference of $188 per month can be a substantial benefit when managing a rental property, especially considering the median home value in the area is $192,280, which suggests a moderate cost of living.
While the appreciation potential in ZIP 74881 is limited, with a price-cut share of 0.2% and no data available on days on market (DOM), the primary focus should be on the steady income it can provide. Additionally, the area's 14.8% renter share indicates a reasonable demand for rentals, although it does not suggest strong growth in the rental market. The median income of $60,923 supports the idea that there is a sufficient number of residents who qualify for Section 8 assistance, ensuring a consistent tenant pool.
In conclusion, ZIP 74881 is best suited as a cash-flow anchor within a Section 8 portfolio strategy. Its higher FMR compared to market rent ensures a reliable source of income, while the moderate home values and median income levels indicate a balanced local economy that supports the program's requirements and tenant stability.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.