Location: Adair County, OK | Metro: Fort Smith, AR-OK MSA
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 | $690 |
| 1 Bedroom | $700 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $920 | $129,604 | 0.71% | D |
| 3BR | $1,240 | $200,846 | 0.62% | D |
| 4BR | $1,520 | $359,625 | 0.42% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP 74948, which encompasses Muldrow, OK, and part of Sequoyah County, are defined by the Specific Area Fair Market Rent (SAFMR) set for this particular ZIP code. For a two-bedroom apartment, the SAFMR for FY 2024 is $890. This figure represents the maximum amount that the housing authority will pay on behalf of a tenant. However, the local market rent for a similar unit, based on Census American Community Survey (ACS) data, is $794.
A landlord who accepts a Section 8 voucher receives a subsidy from the government to cover a portion of the rent. The tenant is responsible for paying 30% of their adjusted income towards the rent. In ZIP 74948, if the tenant's portion of the rent is below $890, the housing authority will make up the difference to ensure the landlord receives the full SAFMR. For instance, if a tenant's portion is $267, the housing authority would pay the remaining $623 to reach the $890 SAFMR.
In addition to the base rent, there are utility allowances that can vary but are generally included in the overall payment structure. These allowances are designed to help cover the costs of electricity, water, gas, and other utilities. If the total of the tenant's portion plus the utility allowance exceeds $890, the landlord still only receives the $890 maximum, and any excess must be paid by the tenant.
To illustrate, let's assume the utility allowance for a two-bedroom apartment in ZIP 74948 is $150. If the tenant's portion is $267, the total they would need to contribute, including utilities, would be $417. The housing authority would then pay the remaining $473 to bring the total to the $890 SAFMR.
Given the local market rent of $794, landlords accepting Section 8 vouchers in ZIP 74948 can expect a slight surplus over the average market rate. This surplus amounts to $96 per month, assuming the tenant and utility allowances together cover the entire $794 market rent. Landlords should note that this calculation assumes the tenant's portion and utility allowances align closely with the market rent, which may not always be the case.
In summary, landlords in ZIP 74948 who accept Section 8 vouchers for a two-bedroom apartment will receive a guaranteed payment of $890, which is above the local market rent of $794. This results in a typical monthly surplus of $96, making it an attractive option for landlords looking to secure steady rental income.
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.