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 | $990 |
| 1 Bedroom | $1,070 |
| 2 Bedrooms | $1,300 |
| 3 Bedrooms | $1,760 |
| 4 Bedrooms | $1,980 |
| 5 Bedrooms | $2,297 |
| 6 Bedrooms | $2,573 |
| 7 Bedrooms | $2,779 |
| 8 Bedrooms | $2,918 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,070 | $103,144 | 1.04% | B |
| 2BR | $1,300 | $142,719 | 0.91% | C |
| 3BR | $1,760 | $204,533 | 0.86% | C |
| 4BR | $1,980 | $272,994 | 0.73% | D |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 73112 in Oklahoma City, OK, provides valuable insights into potential investment opportunities. The Fair Market Rent (FMR) for a 2-bedroom apartment in ZIP 73112 for FY 2024 is set at an annualized rate of $13,200 ($1100 per month), while the market rent, as indicated by Zillow's ZORI index, stands at $15,348 annually ($1,279 per month).
To calculate the gross yield, we divide the annual rental income by the median home value of $185,829. For the Section 8 scenario, using the FMR, the gross yield is approximately 7.1%. This calculation is based on the following formula: $13,200 / $185,829 = 0.071 or 7.1%. In contrast, if we consider the market rent, the gross yield increases to about 8.2%, calculated as $15,348 / $185,829 = 0.082 or 8.2%.
Given the 48.3% renter density and the 37-day Days on Market (DOM), it is evident that there is a significant demand for rental properties in this area. However, the reality of managing a property under the Section 8 program versus the private market must be considered. While the Section 8 scenario offers a stable, government-backed income stream, it comes with lower yields and stricter regulations compared to the private market.
The higher gross yield from market rent suggests a potentially more lucrative investment opportunity for landlords and small-portfolio investors willing to navigate the private rental market. However, the stability offered by Section 8, combined with the substantial renter population, makes it a viable option for those seeking consistent cash flow without the risks associated with private tenants.
In conclusion, the gross yield from Section 8 rental income in ZIP 73112 is 7.1%, while the market rent offers a slightly better return at 8.2%. The choice between these two options should be made considering the investor's risk tolerance, management capabilities, and preference for either a guaranteed income source or the potential for higher returns in a competitive market.
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.