Location: Seminole County, OK | Metro: Hughes 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 | $730 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,020 | $50,413 | 2.02% | A+ |
| 3BR | $1,400 | $107,293 | 1.3% | A |
| 4BR | $1,530 | $179,638 | 0.85% | C |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,040 for ZIP 74884 (Wewoka, OK) can sufficiently cover the mortgage on a home priced at $80,097. According to the data, the FMR is designed to ensure that rental costs remain affordable for low-income families. However, the actual amount needed to cover a mortgage will depend on the interest rate and loan terms. If we assume a standard 30-year fixed-rate mortgage with an average interest rate, the monthly payment could be around $300-$350, leaving a comfortable margin above the mortgage payment with the FMR.
The demand for rental properties in Wewoka, with a rental rate of 32.6%, may also cause concern. This percentage indicates that slightly over one-third of households are renters. While this figure is relatively low compared to urban areas, it still suggests a viable market for rental properties. The key is to understand the local housing dynamics; if the rental market is underserved, this percentage could indicate strong potential for growth.
Another critical point is whether the Housing Choice Voucher program will keep pace with market rents of $846. The voucher program aims to subsidize rents up to the FMR level, but the actual amount paid per voucher varies based on the income of the tenant and other factors. Historically, voucher amounts have not always matched market rents, leading to gaps between what landlords receive and what they need to sustain operations. To address this, landlords should consider the likelihood of receiving the full FMR amount through vouchers and possibly adjust their expectations or seek additional sources of income.
In summary, while the data presents some challenges, such as the gap between FMR and market rents, it also highlights opportunities. The FMR is likely sufficient to cover mortgage payments, and the rental rate, though not high, still represents a significant portion of the market. The Housing Choice Voucher program provides support, but landlords must be aware of potential discrepancies between voucher payments and market rates.
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.