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 | $830 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,660 |
| 5 Bedrooms | $1,926 |
| 6 Bedrooms | $2,157 |
| 7 Bedrooms | $2,330 |
| 8 Bedrooms | $2,447 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,090 | $270,612 | 0.4% | F |
| 3BR | $1,480 | $463,172 | 0.32% | F |
| 4BR | $1,660 | $569,183 | 0.29% | F |
| 5BR | $1,926 | $812,116 | 0.24% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP 73007, located in Edmond, Oklahoma, might have several concerns regarding the viability of investing in properties through the Section 8 program. Let's address these concerns with the available data.
Will FMR $920 (zip FY 2024) cover the mortgage on a $527,999 home?
The Fair Market Rent (FMR) for ZIP 73007 in fiscal year 2024 is set at $920 per month. To determine if this will cover the mortgage on a $527,999 home, we need to consider the typical interest rates and loan terms. Assuming a 30-year fixed-rate mortgage at an average rate of 5%, the monthly payment on a $527,999 home would be approximately $2,790. Clearly, the FMR of $920 falls short of covering the mortgage payment. This indicates that relying solely on Section 8 payments may not be sufficient to support a mortgage on a property priced at $527,999.
Is there enough renter demand at 3.2%?
The percentage of renters in ZIP 73007 is 3.2%. This figure suggests a relatively low demand for rental properties compared to other areas. However, it's important to note that the demand for Section 8 housing can be different from general rental demand. The local housing authority and the waiting list for Section 8 vouchers can provide more specific insights into the demand for subsidized housing. With limited data, it's difficult to make a definitive statement, but the low percentage of renters does raise questions about the saturation of the rental market.
Will vouchers keep pace with $948 market rents?
The FMR for ZIP 73007 is $920, while the average market rent is $948. This means that the voucher amount is slightly below the market rent. Over time, the FMR is adjusted based on changes in the local housing market, which should theoretically keep pace with inflation and rising costs. However, the adjustment process can lag behind actual market conditions. It's crucial to monitor any updates to the FMR and consider the potential impact on your investment. If the gap between the FMR and market rents widens, it could affect the profitability of your investment.
In conclusion, while ZIP 73007 offers some opportunities for real estate investment, particularly for those familiar with the intricacies of the Section 8 program, the data raises valid concerns about mortgage coverage, renter demand, and the alignment of voucher amounts with market rents. These factors should be carefully considered before making any investment decisions.
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.