Section 8 Fair Market Rent (FMR) for ZIP 73106 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Housing Authorities Serving ZIP 73106

• OKLAHOMA HOUSING FINANCE AGENCY (Oklahoma City, OK) - 11,494 Section 8 vouchers
• Housing Authority of the City of Oklahoma City (Oklahoma City, OK) - 5,071 Section 8 vouchers
• Housing Authority of the City of Del City (Del City, OK)

To decide whether you should buy in ZIP 73106 (Oklahoma City, OK) for Section 8 investment, follow these steps:

1) Does FMR $990 (zip FY 2024) clear debt service on a $187,716 property?

• No: The Fair Market Rent (FMR) of $990 is insufficient to cover the debt service on a property valued at $187,716. Assuming a typical mortgage rate of around 4%, the annual debt service would be approximately $11,263, which translates to roughly $938 per month. This amount is very close to the FMR but does not provide a buffer for maintenance or other unexpected costs.

2) Is market rent $1,111 (ZORI) above, at, or below FMR?

• Above: The Zillow Observed Rental Index (ZORI) of $1,111 is higher than the FMR of $990. This suggests that landlords could potentially charge more than the FMR to non-Section 8 tenants, although Section 8 tenants will only pay up to the FMR.

3) Are 64.6% renters + N/A-day DOM enough demand?

• Yes: With 64.6% of the population being renters, there is significant demand for rental properties. However, the Days on Market (DOM) is listed as N/A, which means there isn't enough data to determine how quickly properties are rented out. Despite this lack of information, the high percentage of renters indicates strong overall demand.

Based on the analysis:

• If your primary goal is to rely solely on Section 8 income, then the answer is no. The FMR barely covers debt service without considering additional expenses.
• If you can diversify your tenant base and include non-Section 8 tenants who might pay closer to the market rent of $1,111, then the answer is it depends. You must assess if the local market supports this mix and if you are willing to manage both types of tenants.

In conclusion, ZIP 73106 presents a challenging environment for pure Section 8 investments due to the tight margin between FMR and debt service. However, for landlords who can attract a mix of tenants, including those paying market rates, it could be a viable option.

Data Sources: FMR data from HUD (2027). 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.