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 | $800 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,420 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,050 | $142,215 | 0.74% | D |
| 3BR | $1,420 | $276,465 | 0.51% | F |
| 4BR | $1,600 | $364,782 | 0.44% | F |
| 5BR | $1,856 | $404,876 | 0.46% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 73044 in Guthrie, OK, reveals a stark contrast between the federally mandated Fair Market Rent (FMR) and the local market rental rates. For a two-bedroom property, the FMR for FY 2024 is set at $950 per month. When annualized, this equates to an annual rent income of $11,400. Given the median home value in the area is $252,596, this translates into an implied gross yield of approximately 4.5% ($11,400 / $252,596).
In contrast, the Zillow Observed Rental Index (ZORI) indicates that the market rent for a similar property is $1,438 per month, or $17,256 annually. This yields a significantly higher gross yield of about 6.8% ($17,256 / $252,596).
Evaluating these figures against the context of ZIP 73044, it's evident that the market rent scenario presents a more realistic outlook for investors. The area has a relatively low renter density of 20.3%, suggesting a competitive market where landlords must offer attractive rents to secure tenants. Additionally, the Days on Market (DOM) statistic of 27 days implies a swift turnover rate, which could indicate a robust demand for rentals. However, the Section 8 program's strict rent controls mean that landlords participating in this program would be locked into the lower FMR rate of $950 per month.
While the higher gross yield from market rents is appealing, it's important to consider the stability and predictability offered by Section 8 tenancy. The lower yield of 4.5% might be offset by the reduced risk and administrative burden associated with subsidized housing. Conversely, achieving a gross yield of 6.8% would require landlords to navigate the competitive rental market, potentially facing challenges such as vacancy periods and the need for regular maintenance to keep properties desirable.
In conclusion, while the market rent scenario offers a better gross yield, the reality of the local rental market and the characteristics of Section 8 tenancy suggest that both options have their merits. Investors should weigh the potential for higher returns against the benefits of stable occupancy and government support when making investment decisions in ZIP 73044.
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.