Location: Oklahoma City, 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 | $1,200 |
| 1 Bedroom | $1,310 |
| 2 Bedrooms | $1,590 |
| 3 Bedrooms | $2,160 |
| 4 Bedrooms | $2,420 |
| 5 Bedrooms | $2,807 |
| 6 Bedrooms | $3,144 |
| 7 Bedrooms | $3,396 |
| 8 Bedrooms | $3,566 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,590 | $183,930 | 0.86% | C |
| 3BR | $2,160 | $247,766 | 0.87% | C |
| 4BR | $2,420 | $374,267 | 0.65% | D |
| 5BR | $2,807 | $622,030 | 0.45% | F |
U.S. Census Bureau data (2024)
The Section 8 analysis for ZIP code 73003 in Edmond, OK, reveals a significant gap between the Fair Market Rent (FMR) and the market rent, known as the Zillow Rent Index (ZORI). For fiscal year 2024, the FMR stands at $1410, while the ZORI indicates a market rent of $1605. This means that the FMR is $195 lower than the market rent, representing a 12.15% discount.
In the context of Edmond, where 42.1% of residents are renters and the median home value is $271,524, landlords and small-portfolio investors should be aware of the implications of renting to Section 8 voucher holders. The median income in Edmond is $78,149, suggesting a relatively stable economic environment. However, the disparity between FMR and ZORI poses a challenge for landlords seeking to maximize their rental yields.
Given that the FMR is below the market rent, landlords who accept Section 8 vouchers will be renting their properties at a rate that is lower than what they could potentially receive from open-market tenants. This discrepancy can affect cash flow and overall investment returns. Specifically, landlords will earn approximately $195 less per month, which translates into a significant reduction over the course of a year.
To put this into perspective, the annual loss due to accepting a Section 8 tenant instead of an open-market tenant would be $2,340. This figure must be weighed against the benefits of having a reliable source of income through the federal voucher program. Landlords must consider whether the stability provided by the government-backed payments outweighs the financial impact of the lower rental rates.
Investors should also factor in the broader economic landscape of Edmond. With a median home value of $271,524 and a median income of $78,149, there is likely a strong demand for rental properties among both voucher holders and non-voucher tenants. This demand can help stabilize the rental market and provide opportunities for landlords to diversify their tenant base and manage their risk effectively.
In conclusion, the gap between FMR and market rent in ZIP 73003 highlights the trade-offs involved in accepting Section 8 tenants. While it represents a 12.15% discount compared to open-market rates, landlords must balance this against the reliability of government payments and the potential for long-term tenancy. Understanding these dynamics is crucial for making informed decisions about rental investments in Edmond.
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.