Section 8 Fair Market Rent (FMR) for ZIP 74931 - 2027

Location: Cherokee County, OK | Metro: Fort Smith, AR-OK MSA

Investment Score for ZIP 74931

N/A

Monthly Rent (2BR)

$1,150

Median Price (2BR)

$N/A

1% Rule

Annual Yield

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$840
1 Bedroom	$890
2 Bedrooms	$1,150
3 Bedrooms	$1,440
4 Bedrooms	$1,660
5 Bedrooms	$1,926
6 Bedrooms	$2,157
7 Bedrooms	$2,330
8 Bedrooms	$2,447

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
3BR	$1,440	$169,879	0.85%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

1,012

Median Household Income

$56,667

Housing Units

423

Renter Percentage

21.6%

Occupancy Rate

86.5%

Renter Occupied

A landlord considering ZIP 74931 for Section 8 investments must evaluate several key factors to make an informed decision. The first question is whether the Fair Market Rent (FMR) of $890 for the fiscal year 2024 can cover the debt service on a property valued at $174,139. To determine this, calculate the monthly mortgage payment including principal, interest, taxes, and insurance. If the total debt service is less than or equal to $890, then the answer is yes; otherwise, no.

The second factor is comparing the market rent of $775 (based on Census ACS data) against the FMR. If the market rent is below the FMR, the landlord has a competitive edge and the answer is yes. If it's at or above the FMR, the answer shifts to it depends, as landlords will need to consider how much they can charge without pricing themselves out of the market.

The third consideration is demand. In ZIP 74931, 21.6% of residents are renters, but the Days on Market (DOM) data is not available. This lack of DOM data makes it difficult to assess the urgency of rental demand. If the 21.6% rental rate is sufficient to ensure that properties will be occupied promptly upon listing, then the answer is yes. However, if there are concerns about vacancy rates due to limited data on DOM, the answer is it depends, as landlords would need to investigate further into local rental trends and vacancy rates.

Decision Tree:

If FMR ($890) covers debt service on a $174,139 property:
- Yes, proceed to next step.
If FMR does not cover debt service:
- No, do not invest.
If market rent ($775) is below FMR:
- Yes, competitive advantage exists.
If market rent is at or above FMR:
- It depends, consider pricing strategy.
If 21.6% renters and DOM data indicate strong demand:
- Yes, investment is viable.
If demand is uncertain due to missing DOM data:
- It depends, research local rental dynamics.

The analysis concludes that while ZIP 74931 shows potential based on the FMR and market rent figures, the lack of DOM data introduces uncertainty regarding demand. Landlords must carefully weigh these factors and possibly seek additional local market intelligence before making a final 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.